Most Disney+ subscribers will shift to ad-supported tier, company predicts

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Disney is anticipating that the majority of Disney+ subscribers will shift to its ad-supported tier when it begins to rollout in the US later this year.

The streamer is currently available for a monthly fee of US$7.99, or a yearly cost of US$79.99. 

Disney is yet to reveal its pricing structure for the ad-supported tier, but has said that it expects many consumers to migrate. 

Speaking at the MoffettNathanson Media and Communications Summit last week, Disney CFO Christine McCarthy said: “Based on our Hulu experience, we actually have more AVOD than SVOD subscribers. We expect about the same percentage for both Disney+ and Hulu, just based on the experience curve that we’ve witnessed.”

Previous figures revealed by Hulu in mid-2019 showed that around 70% of its then 82 million viewers were paying for the ad-supported version of the streamer. However it’s worth noting that Hulu’s ad-supported plan is significantly cheaper than its ad-free option (US$6.99 per month versus US$12.99 per month).

Disney revealed more details on the nature of its Disney+ advertising business last week.  The company will deliver about four minutes of ads per hour viewed, while Disney+ has told advertisers that it will not accept alcohol or political advertising and, unlike some of its rivals, it will not take ads from other outlets or entertainment studios.