A world in which Disney+ has ads is starting to take shape, and as the streaming service plans to unveil a lower-priced subscription tier with advertising breaks, details about what kinds of ads Disney+ will and won’t support are starting to become clear.
Both WSJ and Variety report that there will only be about four minutes or less of ads per hour of programming on the streaming service, as Disney+ is hyper-aware of not wanting to negatively impact the viewing experience.
Furthermore, there will be a strict policy with regards to what kinds of ads can be shown in order to maintain the family friendly sheen of the streamer. Sources tell Variety that Disney+ won’t accept ads for alcohol or politics, and that the streaming service also won’t accept advertising from competitor outlets or studios – so don’t expect to see a trailer for “The Batman 2” or Netflix on Disney+.
In terms of cost, Disney+ is expected to charge a fairly steep price to advertise on the streaming service, despite the fact that advertisers will not be able to choose which program their ad plays in front of. Disney+ is reportedly seeking to charge between $50 and $60 per 1,000 viewers, although that’s reportedly in line with what other top streaming services charge.
Disney+ with ads comes as Netflix is also actively working toward adding an ad-supported tier to its service within the year, something Netflix execs had previously said would never happen.
Streamers HBO Max, Hulu, Peacock and Paramount+ already have lower cost tiers with ads, with some of those services restricting “premium” content for the higher tiers.
It’s a brand new world out there, and as the streaming wars continue the next phase appears to be a battle for advertisers.