A small milestone in the so-called “streaming wars” occurred at the end of 2021: Disney’s blockbuster-ready Disney Plus service surpassed Netflix in new customers for the first time, a numbers game that sent Netflix’s stock price falling.
What’s New?
Now, in 2022, each streamer is planning how to preserve quality while still making a profit from a massive content project. For Netflix, this meant an increase in the base fee. For Disney, this entails creating fresh versions of the service for those who haven’t yet subscribed.
Disney said on Friday that, similar to Hulu’s multiple subscription tiers, Disney Plus will add an ad-supported membership tier sometime in late 2022. The ad-free version, as well as the Hulu and ESPN Plus package options, will remain.
What’s More?
The pricing structure was not disclosed in the announcement, although it is expected to be less expensive than Hulu, HBO Max, and Peacock’s existing no-ads offering, which costs $7.99 per month.
In a statement, Kareem Daniel, chairman, Disney media and entertainment distribution, said, “Expanding access to Disney Plus to a bigger audience at a cheaper price point is a win for everyone — consumers, marketers, and our storytellers.”
Digging In More Details
“More people will be able to see our incredible content.” Advertisers will be able to reach a larger audience, and our storytellers will be able to share their wonderful work with an even larger audience of fans and families.”
Disney claimed 129.8 million Disney Plus subscribers in its most recent earnings call (which includes 45.9 million subscribers to the international Disney Plus Hotstar service). By 2024, the corporation wants to achieve 230-260 million customers.
Concluding Notes
That means a regular stream of Star Wars, Marvel, and Disney-related shows — many of which are in the works — as well as innovative ways to attract viewers.
In the near future, Disney hopes to reveal pricing and an official launch date. After launching in the United States and Canada, the ad-supported service is expected to expand internationally.
References:
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- https://www.engadget.com/disney-plus-ad-supported-tier-2022-143555459.html
- https://techcrunch.com/2022/03/04/disney-is-getting-an-ad-supported-subscription-tier-later-this-year/
- https://www.hollywoodreporter.com/business/digital/disneyplus-cheaper-ad-supported-tier-1235104274/