Many subscribers are happy paying for Disney+ with adverts, according to latest statistics released by The Walt Disney Company.
- In the last year, half of new Disney+ subscribers have opted for the new cheaper, ad-tier.
- The streaming service is to open up new advertising opportunities, including targeted ads.
- Switching to ad-funded tier is one way to beat the imminent price rise.
Ahead of the one year anniversary of the launch of an ad-funded version of Disney+, the company says half of all new subscribers to the platform have opted for the cheapest subscription tier.
The news confirms the move to introduce cheaper ad-funded subscription tiers has been instrumental at attracting more viewers. It come as consumers are deluged with ever more streaming services as budgets are tightened.
As its ad-funded audience grows, Disney has announced the launch of more targeted advertising and sponsorship opportunities. Targeting is now available for marketers to reach audiences with precision, across demo (age and gender); geography (State/Designated Market Area) and Audience Segments stemming from Disney’s award-winning, proprietary first-party Audience Graph.
Disney hasn’t however confirmed how many existing subscribers have converted from ad-free in exchange for a reduction in their monthly subscription.
In the UK, annual price hikes coming into force will mean the £4.99 ad-funded tier is more than 50% cheaper than the new £10.99 Premium tier. Existing subscribers will automatically default to the Premium tier if they don’t take action in the coming month.
▶ How to avoid the Disney+ 37.5% price rise
The stats will give food for thought to other streamers thinking about launching an ad-funded tier. In the past week, Paramount+ confirmed it too was going to start rolling out an ad-tier. However, a UK launch date isn’t yet confirmed.
Marc Thornham