Would you watch ads or pay the higher premium?
Ever since its debut in November 2019, Disney+ continually brings fresh content along with old favorites. Disney+ got us through the early weeks of the pandemic when everything was shut down. It kept The Walt Disney Company above water when its theme parks around the world closed.
From Star Wars and Marvel spin offs to documentaries and classic movies, Disney+ has something for everyone. I personally love watching any documentaries involving the theme parks. We have also had Encanto playing on repeat!
Despite the enthusiasm for Disney+, the number of new subscriptions is not as high as The Walt Disney Company would like. While it continues to increase subscriptions every quarter, Disney is reportedly brainstorming ways to hit their goals.
Ads are coming to Disney+
Back in March, we began hearing rumblings about a cheaper plan. Currently priced at $7.99 for just Disney+, cheaper plans would be available. The catch of course is that ads will be shown on these lower-priced tiers.
Disney confirmed this shortly after and shared that it will be available in late 2022. As we get closer to that late 2022 deadline, we may begin to hear more about ad streaming. At this time dates and pricing are not available.
How much will Disney make from ads?
According to a prediction from The Hollywood Reporter, Disney could make almost 2 BILLION dollars from ad streaming by 2025. Since we do not know if there will be tiers for the number of ads, how much it will cost users, and general impressions from consumers but $2B is still a lot of money for a couple years.
Additionally, demand for Disney+ content combined with the fact that Disney owns the majority of the content means they stand to make more than Netflix, which is also turning to ads.
So, what changed for the sector biggies? “The most obvious answer is that the slowdown in subscriber growth and the ability to broaden out the reach of each service with lower price points, especially in developing markets, have necessitated the development of an ad-supported tier,” the Wall Street expert argued. “In addition, if managed correctly, the pivot to advertising has the ability to strength the margin profile and growth trajectory of each service.”
Would you consider watching ads in exchange for a lower monthly premium? Or do you prefer to keep your Disney+ add-free? Let us know in the comments below and on Facebook.