Low-cost Subscriptions Disney+ Will Reduce Advertising to 4 Minutes per Hour
Disney will release a special subscription for the Disney+ streaming platform that will be inexpensive and will be ad-supported. According to the company, this subscription will be available to the residents of the United States of America this year, and it will be available in all other countries from 2023.
Disney has been providing a lot of reports that give a good representation of upcoming cheaper subscriptions. The new subscription will limit streaming ads to just 4 minutes per hour. Rita Ferro, Disney's president of partnerships and advertising, cites the example of Hulu, where ads last twice as long as Disney's new subscription.
Also, reports say there will be no ads targeting toddlers and preschoolers at all. And those users who have the Kid's profile will not see any ads at all, regardless of what they are watching.
Disney carefully monitors its image, which is aimed at children and families, so there will be no place for alcohol advertising and politics in Disney+. Also, the company will not advertise the services of competitors in order not to lose even a part of its audience.
In March 2022, Disney announced low-cost, ad-supported subscriptions. These subscriptions have the potential to increase the audience and revenue. Presumably, these subscriptions will allow it to achieve its goals by 2024.
According to the latest data for the first quarter of 2022, Disney+ brought about 7.9 million subscribers, while the total number of subscribers on the platform is about 137.7 million. Thus, the innovation has clearly been more than successful. While Netflix, Disney's main competitor, lost 200,000 subscribers over the same period, which led to a decrease in stock prices. Perhaps Netflix should think about a similar subscription in order to improve the company's business.
Did you like the idea of new subscriptions from Disney? Do you think Netflix will follow the example of its competitor? Leave your opinion in the comments below.
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