Disney+ Launches New Ad-Supported Plan in U.S.
Over 100 advertisers and brands, from LVMH to Marriott Hotels & Resorts, are participating in the launch, which Disney has been promoting to marketers and ad buyers since May.
“A brand like Starbucks will have no more than one commercial an hour, no more than two a day,” said Disney Advertising President Rita Ferro. “We’ve asked advertisers for multiple versions of creative. Even if they air two a day, you won’t see the same ad.”
While the company’s other streaming services, Hulu and ESPN+, already have commercials, the move introduces a second source of revenue for Disney+ to supplement subscription fees.
As subscriber growth slows in North America, Netflix similarly introduced commercials to bolster revenue and support its estimated $17 billion annual content spend.
HBO Max, Paramount+, and Peacock, also offer ad-supported versions of their streaming services.