It seems like Marvel and Star Wars might actually be to blame for the upcoming new Disney+ Ads as they pull huge numbers.
It looks like the time of ad-free Disney might be coming to a close (well, if you don’t want to pay extra). With so many eyes on the platform, everyone is starting to ask for a piece of the pie. In just two short years, mainly thanks to Star Wars and all the Marvel stuff, has become one of the biggest streaming platforms out there.
If you have Hulu (already part of the streaming giant), you might be familiar with ads in your shows and movies. However, up until now, you didn’t have to worry about getting interrupted. Now, that’s all coming to a close.
Star Wars & Marvel the Cause For New Disney+ Ads
A source from the Hollywood Reporter has identified the main issue is actually that Marvel and Star Wars sell too well! There are so many eyes on those shows, they are looking for new ways to build revenue. So, that means ads.
“Is this a Hail Mary? No, it’s not,” Disney CFO Christine McCarthy said of the strategy shift March 7 at a Morgan Stanley conference. “We certainly welcome it if it drives more consumers, more subscribers, if it improves ARPU, but we are really doing it because of consumer choice.”
At only $6.99 a month, they are on the lower end of ad-free streaming platforms, however, when compared to the giant library of something like Netflix, they are much smaller. The price is slightly less, but if you want to keep paying the same price, it looks like you’ll be seeing ads sooner than later.
So, why the sudden change now? Two main issues, their subscriber growth has significantly slowed, and they think offering a lower price point will get new people in, and they might upgrade to ad-free after a while. Secondly, Disney has near limitless partners. And they all want in on the 130 million subscribers.
They have also been looking at the Hulu numbers, the ad-supported side of the business actually brings in more revenue overall than the non-ad side. Despite being double the price, it makes far more overall revenue and increases profits.
The only upside is there might be a cheaper bundle with Hulu when this launches, so could save you some cash overall.
“…announcing that Disney+ would get a cheaper, ad-supported tier later this year, with international markets to follow in 2023. Disney+ joins a crowded field of ad-supported streaming platforms, both subscription offerings like Paramount+, Peacock, Hulu and HBO Max, but also free offerings from the likes of Tubi and Pluto.”
However, the source did state that the main reason for the change is most likely the success of the two franchises and a way to capitalize on those fan bases while they can.
So, they haven’t finalized anything, but get ready for ads soon!
Would you still watch Disney+ if there are ads? Would you just go for the higher tier?
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About the Author: Travis Pasch
Travis Pasch
Job Title: Head Writer & Editor
Socials: @paschbass
About Travis Pasch: Travis has been a Warhammer 40k hobbyist since the 1990s, playing the game since Third Edition. Through extensive traveling, he’s seen a lot of the miniatures hobby from across the world, giving him a unique perspective on the latest gaming topics and trends.
Travis’s brother even owns a commission painting studio, where he’s picked up a lot of good advice and techniques for painting Warhammer and tabletop miniatures over the years, as well. Travis joined the Spikey Bits team in 2019 and has been the lead writer since 2020.
Currently, he’s working on converting all his 40k Adeptus Mechanicus models and becoming a true tech enjoyer, complete with both sad and happy robot noises!
