The sun appears to be setting on the era of ad-free streaming, as advertisements make an unexpected resurgence, and the landscape of streaming services takes on a familiar, cable TV-like complexion. The days of uninterrupted binge-watching might be numbered. Disney+ might be a significant example.
The Rise of Ad-Supported Streaming Services
In the world of streaming services, ad-supported tiers have become the norm. The majority of big players, such as Netflix and Disney+, offer their customers the choice of paying a premium for an ad-free experience or opting for a cheaper subscription that includes ads. Apple TV Plus is one of the few exceptions that still hold out on this trend. Interestingly, according to Disney, a significant number of people are choosing to put up with the ads.
Disney+ Subscribers Embrace Ads
Disney recently revealed in a press release that half of all new subscribers are opting to tolerate ads on their streaming service rather than shelling out more money to eliminate them. The company also highlighted that Disney+ has experienced a 35% surge in engagement between March and September of this year.
Rita Ferro, the President of Global Advertising at Disney, shared that not only are more people engaging with the platform, but they are also spending more time using the app.
A Quote from Rita Ferro
Ferro stated, “In line with Disney’s strategic approach, we’ve spent the last 10 months testing, learning, and listening to our consumers and clients. This is how we continue to create viewer-first experiences while simultaneously introducing new capabilities, functionality, and formats. We’re seeing increased engagement and time spent, and now providing greater accountability for marketers through robust measurement, proving that premium content matters.”
Disney+’s Two-Tier System
Currently, Disney+ operates on a two-tier system.
Disney+ Unveils New Pricing Plans
Disney+ has recently introduced two new pricing plans for its users. The first one is a more affordable, ad-supported tier, while the second one is a pricier, ad-free tier. The ad-supported Disney+ Basic plan is currently priced at $7.99 per month. However, if you prefer an ad-free streaming experience, you can opt for the Disney+ Premium plan, which costs $13.99 per month or $139.99 per year. Disney+ is also available in the Disney Bundle, which now comes in five different configurations. It’s a bit overwhelming, but hey, who doesn’t love options?
Apple Follows Suit
In a similar vein, Apple also announced price increases for its services this week. The tech giant has increased the prices for Apple TV+, Apple News+, and Apple Arcade, as well as its Apple One bundle. It seems like the streaming wars are heating up!
Conclusion
As we navigate the evolving terrain of streaming services, it’s evident that ad-supported tiers have entrenched themselves as the new standard. With industry heavyweights like Netflix and Disney+ offering users the choice between ad-free luxury and budget-friendly subscriptions with ads, the trend is unmistakable. Surprisingly, many viewers are embracing ads, as Disney+ has reported a surge in engagement, proving that premium content still reigns supreme. The two-tier system adopted by Disney+, along with the recent introduction of new pricing plans, reflects the growing versatility of streaming platforms. Meanwhile, Apple has followed suit, increasing prices for several of its services. The streaming wars are evidently intensifying, ushering in a new era where advertising and choice coexist in the world of online entertainment.
