Disney Plus Forecasts Dim Future for Ad-Free TV

Disney Plus predicts a grim outlook for Ad-free Tv, despite the company’s subscriber base continues to decline.

Disney Plus experienced stagnant subscriber growth six months after increasing the price of their ad-free streaming service from $8 to $11 per month, along with the introduction of an ad-supported tier at the original price. The company lost 300,000 streaming subscribers in the U.S. and Canada during Q1 2023, having only gained 200,000 subscribers the previous quarter.

Despite a stagnant subscriber base, Disney+ is not planning to reconsider its price-hike strategy. In fact, the company is moving closer to achieving profitability, with CEO Bob Iger hinting at another price increase on the ad-free tier in the near future.

bob inger

It has become clear that viewers who watch ads are more beneficial for streaming services than those who don’t, leading to ad-free TV becoming more of a luxury. This trend has been observed not just with Disney+, but also with Hulu, which is mostly owned by Disney. Hulu was the first to realize that it can generate more revenue from ad-supported subscribers than ad-free ones.

In 2019, The New York Times reported that Hulu earned $15 per subscriber on its ad-supported plan, which cost $6 per month at the time, while its ad-free service was priced at $12 per month. The price gap has only increased since then, with Hulu’s ad-supported plan now priced at $8 per month and the ad-free version at $15 per month.

We initially arrived at this point as a result of the widespread use of ad-supported streaming. The only way out is to vote with your cash.

Abeer jawad

Abeer Jawad as Content Marketer specialize management of online growth and generating in organic traffic. She loves to explore different content tactics and deliver innovative strategies to improve brand visibility.
Expertise: Social Media Marketing, Creative Writing, Research Analyst and SEO
Education: MBA in Marketing

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