Disney+ to Introduce Ad-Supported Option Later This Year
Today, Friday, March the 6th, Disney announced that an ad-supported version of the Disney+ streaming service is coming. This cheaper option is expected in late 2022 Stateside, with plans for international offerings in 2023. Launch date and price points will be revealed at a later time. The company wants to double the service’s 130 million subscriptions in 2021 by 2024, and the introduction of a cheaper version is expected to attract potential subscribers. Subscriptions plateaued after last year’s price hike, prompting suspicions that this could be the solution to holding onto lower-income families. Read Disney Media and Entertainment Distribution Chairman Kareem Daniel’s statement here:
“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers. More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”
Rita Ferro, the president of Advertising, Disney Media and Entertainment Distribution, meanwhile, had this to say:
“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory. Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”
When I first saw this headline on Deadline, I thought Disney had done it again; they had somehow managed to dig themselves into a deeper hole by introducing ads to a service that was already experiencing price hikes. However, with all the context, it doesn’t seem that odd. Most streaming services offer different tiers like this, where you can save a couple of dollars monthly by sitting through ads. I’m not against this because if you don’t want ads (like me), this doesn’t affect you. My husband is a sports nut, so we have the bundle with ESPN. As such, this doesn’t have much to do with me. I hesitate to praise anything business-related that Disney does these days, but this seems like a win overall. This just gives people more options to save a buck if they want, and it shouldn’t affect the standard option. Disney is really hamming it up in saying their “storytellers” can now reach more families, but that’s what they do – they speak in euphemisms, equating business decisions with magic and corporate capitalism with the fulfillment of childhood dreams. This decision seems innocuous enough and even beneficial to those having to tighten their belts.
