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After Netflix, Disney+ Unveils New Ad-Tier Option: Is This The Beginning of the End?

Streaming is big business. It is also cutthroat. The market is dominated by a handful of services, which are neck-deep in competition. Recently, Netflix was facing headwinds for the first time in many years. This is partly due to stiff competition from newer entrants like Disney+ and HBO Max.

It was earlier reported that the streaming giant Netflix was considering cuts and an ad-supported plan. Now, Disney+ may be following suit. Disney+ has been ad-free since its inception in November 2019. Not for long now, if reports are to be believed. After all, there are big bucks to be made from advertisements and commercials with all the popular content Disney has on its service.

Related: Hit TV Shows That Switched From Network Television To Streaming (& Became Better)

Disney+ Unveils A New Ad-Tier Option

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The logo of Disney’s streaming service

After years of being ad-free, Disney is reportedly launching an ad-supported plan later this year. The four-minute-an-hour ad load being considered is smaller than what others have and much smaller than Television.  Disney+ is reportedly seeking to charge advertisers $50 to $60 for reaching 1,000 viewers, according to the Wall Street Journal. The streaming service has top-notch content watched by countless young people and kids. This demographic has seemingly ditched the television for their smartphones and tablets and advertisers seem keen to have their attention.

Related: How HBO Max Beat Netflix To Become One Of The Best Streaming Platforms

Would This Move Hurt The Streaming Service?

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Representative image

Ads are universally disliked. But so are high subscription charges. This move allows Disney+ to offer its services at reasonable rates in the international market and would also bring a lot of ad revenue.

Related: Real Reason Why Netflix, World’s Largest Streaming Giant, Failed

Disney+ Is Reportedly Being Cautious With Advertisements

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Disney+

The streaming service seems quite cautious about advertising on its platform. For starters, Variety reported that the service would not accept “alcohol or political advertising” at its launch. Moreover, Rita Ferro, Disney’s president of ad sales and partnerships told the WSJ that “We’re never going to collect data on individual kids to target them,” Further, it has been decided that they would not run any commercials during programming catering to preschool children. These safeguards are a welcome policy decision by Disney. In an age where privacy concerns are gaining traction, it is the right thing to do. What is your take on this? Let us know your opinion in the comments section below.

Related: All Major Releases Coming To Netflix, HBO Max, Disney+ This May

Written by Angad Singh

Lawyer, news junkie and about a dozen other things.