As a seasoned cinema enthusiast with decades spent navigating the ever-evolving landscape of entertainment, I must say that the latest developments in the streaming industry have left me both amused and somewhat perplexed. The cat is out of the bag, and it seems that Disney+ has accidentally (or perhaps intentionally) given us a glimpse into their strategic masterplan.
After making a strong entrance into the streaming world, Disney+ has grown to be one of the major players. Recently, it was discovered that the conglomerate’s new subscription strategy is proving to be very successful. Alongside its original content, Disney+ also offers the latest theatrical releases such as the popular Deadpool & Wolverine. Interestingly, it appears that the ad-supported “Basic” subscription tier is attracting a significant number of subscribers for the platform. In fact, the CEO of Disney may have inadvertently shared some insights regarding this aspect.
During a Q4 earnings call (as reported by IndieWire), Disney CEO Bob Iger spoke about the status of their streaming service, Disney+. Inadvertently unmuted, Iger revealed that the company is focusing on transitioning subscribers to AVOD (Advertising-based Video on Demand) because it offers the greatest expansion potential for the streamer. This shift involves the ad-included plans on Disney+, Hulu, and ESPN+. Interestingly, they’ve recently raised the prices of their services to attract customers towards the ad-supported options.
Instead of focusing solely on increasing prices, we’re working to shift consumers towards the ad-supported side of our streaming platform. In the United States, approximately 60% of new subscribers are choosing our advertising-supported service, often referred to as AVOD. At present, around 37% of U.S. subscribers and 30% of global subscribers have opted for the ad-supported version.
At a later point, Iger acknowledged, “I’m not sure if I was meant to share those AVOD figures.” It’s understandable that we all have moments of accidental unmuting, but Iger’s slip seems to be more substantial than usual. While it’s possible he did this intentionally, it’s generally more plausible that the CEO of Disney merely made a routine yet impactful error. The disclosed data does align with the recent hike in Disney+’s pricing for its ad-supported tier, which increased from $7.99 to $9.99.
Streaming is Becoming the New Cable
In essence, streaming services are increasingly taking over the role once held by cable TV in the digital realm, due to rising prices as well as an abundance of options. It seems like a new streaming platform emerges almost weekly, even companies like Chick-fil-A have ventured into this area. Yet, there’s a silver lining: Disney has teamed up with other leading corporations to offer more affordable packages for consumers. As a result, customers can now access Disney+, Hulu, and Max together for just $16.99 per month (with ads).
In contrast, other significant streaming services appear to be quite comfortable operating independently. Netflix and Amazon Prime Video continue to produce a steady stream of content while gradually increasing their prices and conspicuously avoiding bundle deals. Despite running at a loss for the past ten years, Netflix remains the dominant player, with Amazon Prime Video close behind. Meanwhile, the remaining streamers are vying for third place, with Disney+, HBO Max, and Apple TV+ in contention. The common thread among these many choices is the availability of an ad-supported subscription option, suggesting that Disney isn’t the only one benefiting from price hikes and the inclusion of advertisements.
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2024-11-14 20:01