Rita Ferro, president of global advertising for Disney, is currently focused on next week’s rollout of the Disney+ ad-tier option for subscribers in Europe and beyond, as well as expanding the streamer’s advertising capabilities. But she did have an interesting tidbit to share about how customers have reacted to the option statesite.
In a Walt Disney press release, Ferro said that, since the introduction of optional advertising in December 2022, subscribers have steadily grown on the idea. “Consistent with Disney’s strategic approach, we spent the last 10 months testing, learning and listening to our consumers and clients. That’s how we continue to create viewer-first experiences while simultaneously introducing new capabilities, functionality and formats,” Ferro said. “We’re seeing increased engagement and time spent, and now providing greater accountability for marketers through robust measurement, proving that premium content matters.”
According to the press release, “50% of new subscribers choose the ad tier, and from March to September 2023 the service has seen 35% increased engagement.” This might have been further helped along by the fact that Disney’s most recent price hike, announced in August, only affected the ad-free tier—as well as the obvious fact that the ad tier is significantly cheaper. The current rates for Disney+ are $US7.99 monthly with ads, or $US13.99 monthly without ads. That’s a big savings if you don’t mind ads interrupting your Andor rewatch, your candy-fueled Hocus Pocus and Hocus Pocus 2 Halloween binge, or the latest episode of Marvel’s Loki.
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