Ahead of its Disney+ ad-tier launch this Thursday, a report by Kantar has found that 1 in 4 subscribers could trade down to a cheaper ad-supported tier.
The report, titled Kantar Entertainment on Demand: Video Streaming Insights, queried 11.435 U.S. streaming subscribers and found that Disney+ had an 8% share of screen time among AVOD streamers in the third quarter of 2022. While AVOD (Advertising-Based Video on Demand) and FAST (Free Ad-Supported TV) users tend to be lower income, AVOD subscribers are more likely younger with young families.
Original content, new releases and a variety of classics have become important Disney sign-up drivers, while being ad-free remains a strength. Sci-fi/fantasy dominated top content for Disney+, including Disney+’s She-Hulk. The report also found SVOD (Subscription Video on Demand) is declining, driven by SVOD only streamers. Growth is coming from streamers who have some combination of SVOD and FAST/AVOD.
Disney+ will roll out its ad-supported streaming offering on Dec. 8 in the U.S. Subscription plans will be made available across Disney+, Hulu, ESPN+ and the Disney Bundle. The monthly standalone subscription plan for Disney+ with ads will be $7.99, and Disney+ with no ads will cost $10.99. Hulu’s standalone plan with ads will cost $7.99, and its standalone plan with no ads will cost $14.99. Additionally, ESPN+ with ads is $9.99 per month.
The Disney Bundle Plan featuring Disney+ and Hulu with ads will cost $9.99 per month. The Bundle with Disney+, Hulu and ESPN+ with ads is $12.99 per month. The Legacy plan featuring Disney+ (no ads), Hulu (with ads) and ESPN+ with ads will cost $14.99 per month, and the Premium plan of Disney+ (no ads), Hulu (no ads) and ESPN+ (with ads) will cost $19.99 per month.