How Disney+ Plans to Handle Its Ad-Supported Tier

Disney+ might consider only showing up to four minutes of ads per hour in its incoming ad-supported tier.

Disney+ wants to keep ad presence at a minimum in its incoming ad-supported plan. Should such limitations be imposed, Disney+ will be the platform with the lowest number of minutes dedicated to advertising among all streaming services.

It's been known that Disney+ is planning on introducing a new ad-supported tier. However, the company has not provided a clear timeline thus far.

Dinsey+ Would Show As Few Ads As Possible

According to a report by the Wall Street Journal, Disney is looking to deliver about four minutes of ads per hour. A report from Media Radar indicated that streaming services with ad-supported plans delivered an average of 12 ads every hour, which accounts for about eight to 10 minutes.

Additionally, Disney+ plans to take things a step further and protect kids. Obviously, a good chunk of Disney+ users are children, so the company wants to make sure no ads will be placed on shows and movies designed for preschoolers. Therefore, there won't be any ads on kids' profiles.

Rita Ferro, Disney's president of ad sales and partnerships told WSJ:

We're never going to collect data on individual kids to target them.

While these are all great details to know about Disney+, we still don't know everything. The two most important things to know about this new addition are whenDisney will introduce its ad-supported tier and how muchit will cost.

We cannot know the exact date, but we can make an educated guess regarding the price. Considering that Disney+ costs $7.99/month with no ads, we expect the ad-supported tier to cost between $4 and $5 per month.

Why Is Disney+ Looking to Get an Ad-Supported Tier?

Disney+ will introduce an ad-supported tier because it's profitable. Displaying ads is profitable and will quickly make up for any revenue loss between plans due to the price difference.

Furthermore, a lot of streaming services are doing this. Peacock, Paramount+, Discovery+, and Hulu have always had such a tier. HBO Max added a cheaper ad-supported tier, while a Netflix ad-supported plan might come by the end of the year.

Ads: The Disney Experience

It's clear that, even when considering introducing a new plan to users, Disney is still taking user experience into account. After all, in the long run, it's more important to win over subscribers' loyalty, and a cheaper ad-supported tier with as few ads as possible might make the platform worth the money.