New research shows 23% of Disney+ subscribers will move to ad-supported tier – What’s happening with Disney Plus

Later this week, on Thursday, December 8, 2022, a new ad-supported tier will be added to Disney+ in the US. The new Disney+ Basic tier (with ads) will be priced at $7.99 a month, while the Disney+ Premium tier (without ads) will be priced at $10.99 a month, which is a price increase of $3 a month per month from today’s price.
According to some new research, Kantar, which conducted an online survey in the US from September 5 to September 24, found that 23% of respondents would choose the cheaper plan.
Disney+ is the latest streaming service to launch with an ad-supported tier. Most recently, Netflix added a low-cost tier, while Hulu, HBO Max and Paramount+ also offer ad-supported tiers.
The new ad-supported tier was announced back in August and will also launch internationally in 2023. Since the announcement, Disney has undergone some major leadership changes, with Bob Iger returning as CEO, who will have to deal with the issue of making Disney+ profitable as quickly as possible. The latest price increase and the addition of the new ad-supported tier will increase the amount of revenue Disney+ can make.
According to the new data, the new ad-supported tier will help Disney reduce the number of people opting out, by offering a cheaper option it hopes will retain some of its subscribers looking to cut costs.
The Kantar survey also found that Disney+ had an 8% share of total screen time among viewers who regularly watch ad-supported video-on-demand (AVOD) programming. Another potential advantage for Disney is that AVOD viewers are slightly younger than the average streaming viewer and are also more likely to have young families.
The new ad-supported tier is also likely to be very popular with new subscribers, or returning subscribers who may only want to watch a select few titles, as a way to save money.
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Source – Deadline