Disney Plus is going to be joining the ad-supported boom of streaming services before the end of 2022.
AVOD (Advertising Video On Demand) is a rapidly growing delivery system for video with services such as Pluto and Tubi seeing explosive growth. While having all of these different streaming services is great, it can also quickly get expensive. With this in mind, more and more services are offering an ad-supported subscription. Hulu, for instance, has seen this work incredibly well with over 70% of its subscribers opting into the ad-tier. Now Disney Plus is set to follow suit.
Disney Plus shared the announcement of its plan on Friday. The exact launch date or price have not been announced as of yet, but it will be sometime before the end of 2022 in the U.S., and in more countries in 2023.
“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” said Kareem Daniel, Chairman, Disney Media and Entertainment Distribution. “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”
“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory,” said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. “Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”
How the ads will work with shows such as WandaVision or The Mandalorian that were never designed with ads in mind remains to be seen.