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Disney to launch cheaper subscription tier for ads soon

Yusuf Balogun
Yusuf Balogun
Yusuf is a law graduate and freelance journalist with a keen interest in tech reporting.

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Today, the American multinational entertainment and media conglomerate, Disney has revealed that it’s considering offering a new subscription option to its SVoD service.

This offer would be identified by a significantly reduced price and the inclusion of adverts in the user interface. This experiment could only be carried out in the United States at first.

But there’s little doubt that if it’s definitive, it’ll be implemented worldwide. Above all, it could cause a shift among Disney’s competitors, who have previously rejected the model’s allure.

It is believed that Netflix, which has previously disregarded this idea out of hand, but SVoD services that are now less successful have already decided to include this type of access in their offerings. This is especially true with NBCUniversal, WarnerMedia, and Paramount Pictures.

Disney+ has big plans, with more than 130 million subscribers now, up from 118 million last November, with an aim of 230 to 260 million paying customers by 2024.

The entertainment giant would undoubtedly prefer to preserve or enhance its recruiting growth rates with this new option at a reduced price but co-financed by advertising, without slowing down its march to profitability.

The prices offered by the few players who already provide access with advertising, the subscription may be reduced by at least three dollars, to $4.99 per month, down from $7.99 now.

It remains to be seen whether Netflix, which has 222 million paying users globally, will succumb to this temptation in order to preserve its growth and supremacy.

Apple+ is an outlier because it does not have an ad-supported version. Its base fee is 4.99 euros per month, which is comparable to what advertising-supported services charge. However, a still restricted catalog explains this relative modesty in the price need.

However, it should be remembered that the cost of a Disney Plus subscription was last increased over a year ago. Initially, the streaming service was only available in Germany for EUR 6.99 per month. Disney CEO Bob Chapek stated in May 2021 that consumers were willing to pay more.

The company has been able to expand its membership base despite the price hike. As a result, it’s unknown when the new Disney subscription will be available and what restrictions will apply to the cheaper membership. Stay connected to Techgenyz for the latest updates on the upcoming Disney cheaper subscription.

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