Subscriber numbers are the game for streaming services. Netflix has built an empire with its offering that gave people the opportunity to stream their favorite films or TV series without a care in the world. One big aspect was that it’s ad-free, which was a big selling point for many and also the reason for some of the pricing out there. Yet, with massive competition, the market is forced to change. Disney+ has now announced that their service will provide an ad-supported subscription model in the US in late 2022.
There are also plans to expand internationally in 2023, which will make it the first ad-based in many markets worldwide. While the advertising industry might rejoice at this development, it’s definitely something that’ll be met with a mixed reception. The lower pricing will make it enticing for those not willing to pay the full price. Yet, some European countries might be concerned about the use of their personal information, especially with local laws like the GDPR in effect.
This isn’t new for Disney, as they’ve done something similar with ESPN+ and Hulu, who was the first ad-supported streaming offering on the market. Yet, it was only in the US so far and it’ll be interesting to see how the reception is international. According to Disney, they believe that it’s a building block to hit their long-term target of 230 to 260M subscribers by the fiscal year of 2024.