In March 2022, Disney Plus announced their plans to incorporate a more affordable ad plan. As opposed to their regular plan (which costs $11.99 a month), this plan would be slightly cheaper. In exchange, a certain amount of advertisements will appear on the service when viewing content. Currently, streaming on Disney Plus is ad-free, as are every other major streaming service. Netflix’s entry-level plan ($9.99 a month) doesn’t include HD video, but still contains no advertisements whatsoever. How will Disney’s recent announcement impact the industry? Will other services follow in their footsteps or not? Let’s break everything down about Disney Plus’ ad plan and try to predict its influence on other streaming services.
Details on the Disney Plus Ad Plan
First off, let’s go over everything we know about the new plan as of March 2022. So far, we know that the ad plan is expected to launch in the United States at the end of 2022, and the rest of the world in 2023. The main details we know are that the new plan will cost a bit less, but include advertisements. We don’t currently know how much less it will cost, or to what extent the ads will exist on the platform. Will they be banners and pop-ups that users will have to scroll past when looking through the platform? Or will we have to sit through videos before (and/or during) watching a movie or series? We’ll know more details soon, but we’ll bet on video advertisements playing before the video.
Banner ads would be too small a hindrance, and make it a far better deal than the base plan. Video ads are more of a dealbreaker, and ensures that current customers won’t switch over to the ad plan. However, the lower price might attract new users who could eventually upgrade their plans. Of course, video ads playing in the middle of a movie are a possibility, but we hope it’s not the case. These kinds of ads remove any sense of immersion, and will only end up frustrating users.
How Much Will the Disney Plus Ad Plan Cost?
With no official announcement yet, we can only speculate towards the pricing of this new plan. Currently, Canadians can pay $11.99 per month or $119.99 per year with an annual plan. The ad plan will likely cost a few dollars less, around $7-8 per month. This way, they can offer one of the cheapest streaming services available. Alternatively, Disney could increase the price of their base plan, and start charging $11.99 for the ad plan. We obviously hope the first scenario takes place, but streaming services are starting to get more expensive. Although we’ll know for sure in the coming months, we’re prepared for both of these outcomes.
How Will This Affect the Industry?
After hearing about Disney’s new plan, one of our first questions was how this will impact other major streaming services. Will they follow in Disney’s footsteps, or will this ad plan fail and become forgotten? We feel that Disney’s ad plan will catch on among other services, regardless of how successful it is. Ad plans allow streaming services to compete over who can offer the cheapest plan. In addition, it allows more users to try out the services as a trial period before fully committing.
We would not be surprised if Netflix implemented an ad plan soon. Following a recent price increase, the streaming giant announced their plans to crack down on account sharing. Meaning, it may no longer be possible to share your password with a close friend or loved one that doesn’t live at the same address as you. With that in mind, we would not be surprised if Netflix introduced an ad plan as their cheapest service. They could either follow the success of Disney Plus, or try to beat them to the punch. Either way, this seems like a bitter mark on the streaming service industry.
Conclusion
We understand that services like Disney Plus want to make their platform more accessible by introducing ad plans. However, it’s hard to view it in a positive light. At the end of the day, nobody wants to sit through ads when watching an entertaining movie or TV show, even if we end up saving some money. The idea that customers need to pay more to avoid ads can be scary, and change the future of the industry drastically. Does Disney Plus’ ad plan seem like a bad idea, or do you think it’s a solid deal? Make sure to let us know your thoughts and opinions in the comments section!
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