Netflix and Disney to offer ad-supported tiers for users
08/01/2022, Bratislava, Slovakia // KISS PR Brand Story PressWire //
Netflix and Disney are set to join the ranks of other streaming services by offering ad-supported tiers for their users. This move is seen as a way to attract more customers and battle against the ever-growing competition in the streaming market. It is currently unknown how many ads will be shown to users, but it is speculated that they will be limited to avoid disrupting the user experience. The new tiers are expected to launch within the next few months.
While several platforms have given free or inexpensive ad-supported streaming for years, the following prominent players, who have long only offered ad-free content: Disney stated in March that an advertising tier would be added to its Disney+ service later this year, and Netflix co-CEO Reed Hastings indicated in April that the firm was looking into the best ways to break its long-standing ad-free policy. In the meantime, HBO Max’s ad-supported tier debuted in June 2021.
The current economic climate highlights the significance of more affordable solutions. Video streamers need another route into consumers’ wallets. The domestic video streaming market appears to be as saturated as ever, primarily due to Netflix’s depressing Q1 2022 statistics and Q2 subscriber prediction.
With the launch of their ad-supported tiers, Netflix and Disney are giving users more choice in how they watch their favorite shows and movies. Users can now choose to watch content with commercials or without for a monthly fee.
So far, it seems that Netflix is taking a more traditional approach to advertising, with short commercial breaks between shows. Disney, on the other hand, is embedding ads within its content. For example, a recent episode of the popular show “The Mandalorian” included an ad for Intel at the beginning and end of the episode.
Netflix and Disney should also think about whether they would be willing to allow other content producers to place advertisements on their platforms. HBO Max has typically declined to do so. Still, Sandoval suggests that Netflix would be wise to permit, for instance, Paramount—which already has licensing agreements with Netflix despite currently having its streaming service, Paramount—to run advertisements for its new film Top Gun: Maverick for viewers who are streaming the original Top Gun on Netflix.
It’s still too early to tell how many ads users will see on these new ad-supported tiers. But if the response is positive, we could see more and more streaming services offering this type of option.
In order to make their new ad-supported tiers more attractive to potential customers, Netflix and Disney should focus on providing a high-quality user experience. This means ensuring that the ads shown are relevant and not disruptive to the viewing experience. Additionally, they should offer a variety of content that appeals to a wide range of viewers. By doing so, they can create more appealing offers than their competitors.
Still, video ads seem to be annoying and frustrating sometimes. For this, users can easily use a good video ad blocker and themselves from every kind of hassle.
Video ad tiers may or may not be a good decision for streaming devices like Netflix and Disney. The outcomes are yet to be seen. Do you think you would be interested in an ad-supported streaming tier? How many ads would you be willing to watch in exchange for a lower monthly price? Let us know in the comments!
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