Disney is launching a cheaper, ad-supported version of its Disney+ streaming service later this year, and reports this week revealed how the company plans to run fewer ads on the cheaper plan than some rival streamers.
According to Variety and The Wall Street Journal, Disney plans to run ads for four minutes on movies and shows that last an hour or less.
That's the same as NBC's Peacock, which runs no more than five minutes of ads every hour, and less than Disney's own Hulu, which runs anywhere between nine and 12 minutes for every hour of content. According to data from Kantar, viewers of traditional TV are exposed to between 18 and 23 minutes of ads per hour.
Disney has confirmed that preschool programming will not have commercials. preschool kids who use their own profile to watch Disney+ on the cheaper plan won't see any ads
Disney has yet to reveal the price of the ad-supported plan, which is set to debut in the U.S.
In the final three months of the year, the company is planning to introduce an ad-supported tier in order to attract new subscribers who can't afford the current prices. In the past, the streaming service has said that it would never show ads, but it is hemorrhaging subscribers.
In June 2021, Disney said that it had no plans to introduce a cheaper ad-supported tier because it was satisfied with its paid subscriber model.
Discovery, NBCUniversal, WarnerMedia, and Paramount are some of the entertainment companies that have launched ad-supported subscription tiers. Apple TV+ will not offer a cheaper streaming option when Disney+ launches its ad-supported tier.
Apple TV+ is priced competitively even with ad-based services at $4.99 per month, but it does not have the content that other streaming services do.
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