Disney+ ad-supported tier releases as ad-free price increases
Disney’s bundle offerings are also getting some updates.
To take the sting out of the increased price, ad-free subscribers can also download shows to watch while away from internet access.
Disney has said that it will show no more than four minutes of advertising per hour of watch time.
The House of Mouse hopes the ad-supported tier will stem the bleeding of revenue from the streaming service.
According to The Wall Street Journal, Disney+ has cost Disney “more than $8 billion over the past three years.”
Variety reports that the initial crop of advertisers includes premium companies like Chick-fil-A, Mercedes, and Marriott.
Those will be traditional ads, but Disney+ plans to bring innovative ad experiences starting in 2023.
Those could be interactive ads with links to the advertiser’s goods or services.
Perhaps we’ll see the ability to purchase products from advertising like Instagram.
Disney is also revamping its bundle offerings
Disney+ and Hulu are $9.99 a month, both being the ad-supported tiers. You can add ESPN+ to the mix for $12.99 a month.
If you want all three streaming services to be ad-free and have download options, it will cost $19.99 a month.
The subscriber count across Disney’s streaming services is now higher than the king of streamers, Netflix.
Will that still be the case now that the ad-free tier has increased?
Higher prices traditionally increase “churn,” or subscribers that temporarily cancel or suspend their service.
Disney might be betting on its brand recognition to mitigate this.
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