The streaming business for Disney has been profitable, thanks to its original films or series, such as Cruella or Loki; However, the success will not represent the incorporation of less expensive alternatives for the audience, a move that other platforms such as HBO Max have already executed.
According to Bob Chapek, CEO of The Walt Disney Company, at the moment it is not contemplated to generate a cheaper subscription for users with advertising, but it is important to note that the executive did not completely rule out this possibility.
“We are always re-evaluating how we got to market around the world, but now we don’t have those plans to do so (offer lower cost service in exchange for advertising). We are happy with the models we have now, “said the executive, who added:” We will not limit ourselves and say no to anything, but at this time we do not have those plans. “
And is that although Disney users may be familiar with the services with advertising in their content – Disney Channel works in this way – there may be some limitations to incorporate these modifications to the streaming model, such as the fact that the price rose one dollar in the United States and two euros in Europe.
In this regard, the director of Disney pointed out that the platform was launched at a “very attractive price-value” and despite the increase in the price that has come for users in these regions “we have not seen a significantly greater abandonment due to that” .
According to analysts in the streaming industry, the rise in prices of this type of digital services is common. For their part, the companies argue that the increase is justified by the extensive content they offer; However, at present the Disney + billboard is still short compared to its main competitors, such as Netflix.
On the other hand, last March, the company exceeded 100 million subscribers, but that figure was not enough to exceed analysts’ expectations for the first quarter of the year, in which the company only added 103.6 million new subscribers when they expected 110.3 million.
Different variables influence this aspect, such as the fact that after confinement people return to look for other forms of entertainment outside the home, or the strong competition that exists within the streaming sector, where platforms such as HBO Max have decided to take a different direction by offering cheaper subscriptions, but with advertising.
This service debuted in the first week of June and offers the platform’s content for a price of $ 9.99, which had been highly anticipated by users, as it represents a decrease of five dollars to the usual price of the platform.
It is worth mentioning that the relationship between streaming content and advertising has gained relevance. According to a study by The Trade Desk, 54% of subscribers to a platform of this nature would consider receiving advertising if the cost were lower or even free.
In Mexico, the context is similar, as a report by the marketing research company OnePoll revealed that 66% of people would agree to watch short ads in exchange for watching a series or movie for free. The reason for this is the variety of services on the market and the fact that users are tired of paying to view the content.
