the addition of Disney+, ad-supported streaming grows //

The new ad-supported tier was launched by Disney+ on December 8. The ad-free streaming service for Disney, Star Wars, and Marvel cost $8 per month. They’ve increased the ad-free tier from $8 to $11. Subscribers can pay $8 but get ads. Brands get exposure alongside Doctor Strange and C3PO.

Why do we care? Premium content used to be ad-free in the early days streaming. This year, the top streaming service Netflix made a major shift. It announced that it would be introducing ads earlier in the year. The announcement was followed by this fall.

These services might be more popular with viewers who are willing to pay more for ad-free. As subscription prices rise and inflation increases, more people want to keep their costs down. This year, the number U.S. households that have ad supported subscriptions has risen at a faster pace than those who have ad-free.

Deeper: How ad-supported streaming affects media planners and consumers is not an issue

More options for advertisers. Disney’s ad-supported tier gives consumers more pricing options. Netflix offers an ad supported level starting at $7. This allows advertisers to reach more people and gives them premium inventory, such as highly-popular movies and series.

“While Netflix’s launch has certainly attracted more attention from the industry, that doesn’t mean that marketers aren’t equally excited about Disney’s ad supported tier,” stated Matt Spiegel, TransUnion’s EVP of media and entertainment. It’s hard to compare them since Disney+ is more an add-on strategy, and the market expects more from Netflix given its longstanding commitment to being ad-free.

An increasing global audience. GWI audience research platform found that 66% of U.S. customers had viewed some subscription streaming service within the past month. 26% of American consumers were streaming Disney+.

However, global brands don’t only want to reach U.S. viewers. Disney+ develops content that connects to audiences around the globe, including Asia Pacific markets.

Laura Connell, GWI’s consumer trends manager said that Disney+ aims to produce 50 APAC originals and plenty of local content by 2023. “Why? It’s a great region for streaming services that want to increase their subscriber base.

Hulu is also available for $8 per month. Both services are complementary and should not compete for viewers. Hulu offers local programming that is not available on Disney+, in addition to movies and series.

Fred Garthwaite (CEO and cofounder of IRIS.TV) stated that Disney+ and Hulu would need to add capabilities that address ad relevancy and brand suitability to meet the expectations of audiences, brands, and advertisers. Disney will increase the value of its new advertising options by incorporating video-level content data. This will also minimize risk of negative viewing experiences and improve brand sentiment by eliminating inappropriate ad placements.

Spiegel stated, “Looking at the advertising market from a macro perspective. This is business as usual Disney that will garner attention without competing with Hulu or its other media brands.”

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