According to reports from Variety and The Wall Street Journal.
Like Variety points out, that would force Disney to run fewer ads per hour than some of its competitors. NBC’s Peacock airs no more than five minutes of commercials for every hour of content, while HBO Max airs four minutes of commercials per hour. The expected number of ads from Disney Plus even exceeds Disney-owned Hulu, which airs nine to 12 ads in an hour.
As for the content of the ads themselves, the company is said to be taking a cautious approach to maintaining its family image. Disney doesn’t just remove ads that may have adult themes, like anything about alcohol or politics – Variety points out that it will not accept any advertising if they come from an entertainment competitor either.
Disney plans to remove ads from all shows if they are also used by a child’s profile. Sources close to the situation say Variety that Disney will remove ads on shows aimed at preschool audiences, even when a user does not have a child profile.
In March, Disney announced it would launch a cheaper, ad-supported option in the US in late 2022, which will later be available in other countries next year. There are no details on the cost of the cheapest option – Disney Plus is currently $7.99/month ad-free. Disney says it added 7.9 million new subscribers last quarter, bringing its subscriber base to about 44 million people in the United States and Canada.
While Disney Plus subscriber numbers continue to grow, Netflix’s has declined (although it’s still at 74.58 million subscribers in the US and Canada). The streaming giant lost subscribers for the first time in more than a decade last quarter, and it’s already hatched a few plans to win back users. A memo to employees says Netflix may be rolling out an ad-supported tier this year, and like Disney Plus, it’s also working on a live-streaming option. Netflix co-CEO Reed Hastings has talked about restricting password sharing to take advantage of streaming freeloaders (much to the dismay of users), which could come at the same time Netflix is rolling out a funded tier. The advertisement.