Source: CNBC
Summary
Disney is considering a free, ad-supported tier for its Disney+ streaming service. The move would allow the company to compete with free services like YouTube and Tubi. According to reports, Disney+ has been exploring the idea of a free tier to attract more viewers. The company has not yet made a final decision. Disney+ currently offers a paid subscription service with no ads.
Our Reading
The announcement sounds ambitious.
Disney+ is thinking of doing what YouTube and Tubi already do: offer free content with ads. Because that’s never been tried before. The “free” tier would be a bold new direction for the company, which currently only offers paid subscriptions. It’s not like they’re just playing catch-up or anything. The move would surely be a game-changer, said no one who’s been paying attention to the streaming wars.
The Familiar Script
This is not the first time a paid streaming service has considered a free tier. In fact, it’s become a familiar script in the streaming wars. Companies try to compete with free services by offering their own free options, often with ads. It’s a move that’s been met with varying degrees of success.
The Ad-Supported Model
The ad-supported model is not new to streaming services. YouTube has been doing it for years, and Tubi has built its entire business around it. Even traditional TV networks have been incorporating more ads into their streaming services. So, it’s not like Disney+ is breaking new ground here.
Competing with YouTube
Disney+ is trying to compete with YouTube, which has over 2 billion monthly active users. That’s a tall order, especially considering YouTube’s vast library of user-generated content. Disney+ would need to offer something unique to attract viewers away from YouTube.
Author: Evan Null
