Disney fans can now choose a cheaper subscription that comes with ad breaks.
This move is an excellent option for those who want to save money, as it can be about $3 less per month. The downside is that you will have to watch commercials at the beginning and scattered throughout the programming.
Disney+ has signed deals with over 100 major advertisers for its ad-supported service, according to Disney+. That includes some of the biggest names in the business, like Chick-Fil-A, Starbucks, and Airbnb. This will lead to a variety of advertising; some streaming services suffer from repetition, and with so many choices, it’s bound to reduce commercial repetition fatigue.
According to Indie Wire, for concise programs, such as the popular Australian kids’ cartoon “Bluey,” there are no ads for its seven-minute episodes.
If you want to watch your favorite Disney+ content with friends and family, you are out of luck if you’re on the ad-supported plan. Disney+ does not allow viewers to use GroupWatch and SharePlay or Dolby Atmos on its ad-supported plan. You’ll have to upgrade to the premium plan if you want to enjoy those features.
Disney+ Basic does not restrict picture quality; 4 K Ultra HD, Dolby Vision, Full HD, HDR10, and IMAX Enhanced Aspect Ratio are all on the ad-supported plan. The selection of movies and TV shows is impressive but less robust than Netflix’s. Still, some great titles are available, including all of the Star Wars and Marvel movies, as well as The Simpsons.
The ad-based tiers of Disney+ and Netflix arrive as both companies face the looming prospect of recession.
Both companies are under pressure to find new sources of revenue as the global economy slows. Disney+ has already introduced an ad-supported tier in some markets, and Netflix is testing a similar offering in select countries.
The move comes as both firms look to diversify their income streams and protect themselves from a potential economic downturn. Disney+ had previously been hit hard by the coronavirus pandemic, with the company forced to shutter its theme parks and postpone the release of several big-budget films. Netflix, meanwhile, had seen its stock price fall sharply in recent weeks as investors worry about the company’s ability to continue growing in the face of an economic slowdown.
The ad-supported tiers could help both companies weather a recession, but they also come with risks. Disney+ is betting its brand power will convince users to accept ads, even though they are paying for the service. Netflix, meanwhile, is taking a gamble that its users will be willing to watch ads in exchange for a lower price.
Only time will tell if these bets pay off, but both companies have high stakes. If they can successfully navigate the economic downturn, they will emerge even stronger than before. If not, they could struggle to keep up with their competitors.