Disney Plus will join the likes of other content streaming platforms like Hulu, Peacock, etc., and will offer an ad-supported plan. The streaming service giant already has an enticing content library that it wants to open to more viewers. Its new ad-supported platform will launch later this year, the exact specifics of which remain unknown.
Disney Plus has a massive subscriber base which it wants to expand further. It could be an attempt to eclipse Netflix, which is also thinking of introducing ads.
What is the new Disney Plus Ad-Supported Plan?
Disney Plus Ad-Supported Plan has been in the works for quite some time. The streaming service giant shared its ad-supported plan details with Wall Street Journal. Disney plans to show a four-minute commercial break in an hour. The timeframe is on par with other ad-supported streaming service plans. However, Disney didn’t reveal the pricing to WSJ.
In addition, Disney won’t show ads to preschoolers who own a subscription. However, it is only available for a separate subscription plan. If the preschool child uses their parent’s account, they will see the proposed four-minute ad in the ad-supported plan.
Disney Plus has an abundance of Pixar and Marvel content, both of which have a huge follower base. It has approximately 130 million subscribers as of now. While Disney added a lot of subscribers in a short time, it still needs more to be profitable. Projection state that Disney Plus needs to hit the 230 million mark to become profitable and start raking cash.
Netflix’s audience share is already plummeting due to the Russia Ukraine conflict, and mismanagement. It is an opportunity for Disney Plus to add subscribers flocking to other services from Netflix. The ad-supported plan will be cheaper than the other two plans offered by Disney Plus. It could be a game-changer for the second-largest global streaming service.
Disney didn’t reveal the pricing details, but it isn’t difficult to take a guess. The base plan is $7.99, so it could be $6 or less. Keep in mind that this is our speculation. Disney also has an opportunity to add a revenue stream by offering ad slots to companies. These slots will ease the cash burn Disney Plus incurred for the last two years to gain subscribers.