Disney CFO Addresses Ad-Supported Disney+ Streaming Plan

Believe it or not, Disney+ is finally getting an ad-supported option. Fans love that the Disney streaming service doesn’t have any ads, but the company is looking to introduce an even more affordable option, albeit one that comes with a few commercials. Disney+ will follow the path of Hulu, giving subscribers multiple options for enjoying movies and TV. Fans understandably have a lot of questions about the new plans, some wondering why Disney+ chose to go the ad-supported route.

Following last week’s big announcement, Disney CFO Christine McCarthy spoke at Monday’s Morgan Stanley 2022 Technology, Media & Telecom Conference (per Deadline) and explained some of the thinking behind the ad-supported decision.

“We had some preconceived notions of what consumers wanted,” McCarthy said. This essentially means that Disney thought consumers largely preferred ad-free experiences. As it turns out, consumers like having the option to spend less money, even if it means watching commercials now and then.

“We also had an incredible amount of advertiser demand,” McCarthy added.

Disney hasn’t announced how much these new Disney+ plans will be or exactly when they’ll be rolling out. Markets worldwide can expect to start seeing the new plans arrive sometime in 2023.

“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” said Kareem Daniel, Chairman, Disney Media and Entertainment Distribution. “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”

“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory,” said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. “Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”

What do you think of Disney’s new ad-supported approach to streaming? Will you be looking into the cheaper version of Disney+ when it arrives? Let us know in the comments!


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