At a time of stagnation and even declines in streaming platform subscriptions, Disney+ has opted to present a proposal that has already begun its run in the United States (and is expected to gradually reach other countries throughout 2023) in which it will the monthly price is lowered with the trade-off of the inclusion of advertising..
New lower-priced Disney+ access subscription costs $7.99 a month
The price is equivalent to the previous cheapest rate, which has now gone up in price to $10.99 per month, but to offset the loss of revenue Disney has reached agreements with more than a hundred advertisers so that advertising, along with the increase in the ordinary subscription, will not mean a decline in the company’s profits.
This subscription mode also enters into the plans of other streaming platforms, such as Netflix, although the price of the Disney+ subscription in this mode is somewhat lower.
And is that Bob Iger, CEO of Disney, already explained that one of the priority objectives of the company has become profitability over having a greater number of subscribers. In that sense, the last quarter resulted in losses of more than 1,000 million dollars, which is why it would have opted for this decision to add advertising on the platform, in addition to increasing the prices of other previously existing subscriptions.
The advertising insertions will be four minutes of ads for each hour of content.The duration of these commercials and how they will be shown, i.e., whether they will appear in the middle of a movie or series, as in traditional television channels, or whether they will be concentrated at the beginning of the content playback, have not yet been disclosed.