Walt Disney announced two months ago that it would offer level with advertising support. While plan issues remain, such as cost and launch date, we know that Disney + minimizes the amount of advertising. Today, The Wall Street Journal reported that Disney + promises to limit the total advertising load to an average of four minutes of advertising per hour. This was confirmed by Disney’s TechCrunch.
Disney + will have less advertising than its Hulu-related ad-supported service, which shows ads almost twice as long (about 7.4 ads). Peacock service has about five minutes of advertising per hour, and HBO Max has no more than four minutes of advertising per hour. According to Kantar, consumers who watch traditional television typically receive 18 and 23 minutes of commercials per hour. Hulu was once known as the AVOD (Ad Video On Demand) service, but is now the company with the most ads per hour. According to Peacock and HBO Max, the lightest commercial loads MediaRadar.
In addition, there will be no advertising in the preschool program. Rita Ferra, president of the Walt Disney Company for advertising sales, said: “We’re never going to collect data on individual children to target them.” Preschoolers who use their own profile to view Disney + ad levels will not see any ads. Disney + has content that is considered safe for the brand, which is very appealing to advertisers.
Although we don’t yet know the cost of the Disney + version with advertising support, we know that Disney executives indicated during a recent call about the company’s earnings that it is likely to raise prices to the non-advertising level that now exists on priced at $ 7.99 per month once the cheap ad-supported option became available to viewers.
As the company launches its cheaper ad-supported subscription plan later this year, after deploying Netflix’s own ad-supported ad platform, the two platforms will compare more than ever before. It will be interesting to see how much advertising Netflix chooses to show and which brands will want to appear next to Netflix content that is less “brand safe”. Netflix showed 221.6 million subscribers in its latest quarterly report, while Disney + 137.7 million.
The Wall Street Journal also reports that advertising buyers said Disney + wants to charge advertisers about $ 50 to $ 60 CPM (cost per thousand). According to the buyers of the ads, this price range, apparently, corresponds to other major streamers. The Wall Street Journal wrote that “Disney declined to comment on prices.” Expenditure on television advertising (streaming, national and local television) in the US is expected to increase by 6% to $ 74.2 billion in 2022. Group M estimates.
The report emerges as Disney prepares for its annual preliminary event in New York this afternoon. According to Fer, the event will be “unlike anything you’ve ever seen”. This is an opportunity for the company to unveil its advertising strategy for Disney +, as well as new programs for Hulu and ESPN +. Most likely, there will be news on ABC and ESPN.