Connect with us

Hi, what are you looking for?

Technology

Disney+ expects most people will choose ads over higher prices

What you need to know

  • Disney+ expects most people to choose its new ad-based tier when it becomes available.
  • The new tier is set to launch in the United States later this year.
  • No pricing has been given for the new ad-filled tier.

Disney expects people to save money rather than pay to skip ads.

Disney+ believes that most subscribers will choose to watch ads than pay higher prices to get rid of them. The company is set to launch the new ad-supported tier later this year although pricing hasn’t yet been confirmed.

Speaking at the 9th Annual MoffettNathanson Media and Communications Summit yesterday, Variety reports that Disney CFO Christine McCarthy said that expectations are that Disney+ will follow the same subscriber makeup as Hulu. More people watch Hulu with ads than pay to remove them, McCarthy said, and it’s thought that Disney+ customers will follow suit.

Notably, Disney+ isn’t worried about the lost revenue that will come from charging customers less because it will be selling ads “at a premium,” generating more than enough money to make up the shortfall. McCarthy also said “we really feel good about this opportunity” when discussing the ad revenue situation.

Disney+ currently costs $7.99 per month in the United States and while details on the ad-supported tier are sparse, the price will obviously be lower. How much lower remains to be seen, but Disney+ believes it will be lower enough that people will be willing to sit through ads to save money.

Those ads will be relatively few, though. Rita Ferro, president of Disney Advertising Sales, confirmed that ads will be limited to four minutes per hour initially, which is less than Hulu. Ads will also start with 15 and 30-second spots but that’s likely to expand in the future.

Disney+ isn’t the only one adding a cheaper ad-supported tier. Netflix will do the same by year’s end, although no pricing has been confirmed there, either. There are no reports that Apple TV+ will follow suit, though its $4.99 per month price is low enough that ads won’t make that much difference unless it was to offer a free tier.

If you want to enjoy Disney+ and other streaming services in style, be sure to check out our list of the best Apple TV deals on the market today.

Advertisement. Scroll to continue reading.

Exclusive content

Apple TV+

apple tv plus channel wrapleft

$5 per month at Apple

100% exclusive content for the price of a cup of coffee.

With TV+, you can watch well-produced, big-budget TV shows from famed directors, and starring award-winning actors and actresses across all your Apple devices and with up to six members of your Family Sharing group.

Click to comment

Leave a Reply

Latest

Top Stories

FTX founder Sam Bankman-Fried and Alameda Ventures made recent headlines for bailing out a handful of CeFi crypto platforms this week, but what exactly...

Top Stories

Although Bitcoin is struggling to form a bottom, altcoins are on a roll and the current price action could benefit UNI, XLM, THETA and...

Top Stories

Ethereum’s native token Ether (ETH) has declined by more than 35% against Bitcoin (BTC) since December 2021 with a potential to decline further in...

Top Stories

The company enables artists and collectors to create, purchase and resell NFTs via blockchain-enabled transactions. Source link

Technology

Interested in learning what’s next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit...

Top Stories

Bitcoin (BTC) made the most of weekend volatility on June 26 as a squeeze saw BTC/USD reach its highest in over a week. BTC/USD...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement