Disney will launch a cheap ad supported version of its Disney + streaming service later this year. This week's report shows that the company plans to use fewer ads than some competitors' streaming media in its cheap plan. According to variety and the Wall Street Journal, Disney said it plans to broadcast four minute ads in films and programs that last an hour or less.
This specification is the same as HBO max, lower than NBC's peacock, which has no more than 5 minutes of advertising per hour, and lower than Disney's own Hulu, which has 9 to 12 minutes of content per hour. According to Kantar's data, traditional TV viewers are usually exposed to 18 to 23 minutes of advertising per hour.
Disney also confirmed that there will be no advertising for preschool programs. In other words, preschoolers who use their own materials to watch Disney + in cheaper programs will not see any advertisements.
Disney has not disclosed the price of the advertising supported plan, which will be launched in the United States for the first time at the end of 2022, but Disney executives said at the company's recent revenue conference call that once the cheap plan is launched, the price of the existing ad free plan may be increased. At present, the plan is $7.99 per month.
Netflix plans to launch a new ad supported streaming cheap package in the last three months of this year, which aims to attract new users who think the current pricing is unbearable. Netflix has long resisted the level of advertising support. It has repeatedly said that streaming media services will never display advertising, but Netflix users are losing, so they have to change their practices.
Disney also said in June 2021 that it had no plans to launch a cheaper advertising supported streaming package soon because it was satisfied with its paid user model, but then the company changed its statement in March.
Other entertainment companies such as discovery, nbcuniversal, warnermedia and paramount have introduced ad supported subscription levels to provide content at multiple prices. When Disney + launches its ad supported tier, it will make Apple TV + one of the only services that does not offer cheaper streaming options.
Now, the price of Apple TV + is very competitive even compared with advertising based services, at $4.99 a month, but Apple There is no rich content that other streaming media services can provide.