After jacking up prices, Disney+ and Netflix consider offering free alternatives
Disney is interested in "price-sensitive" streaming customers.
Disney is interested in "price-sensitive" streaming customers.
The short version
- Disney is interested in “price-sensitive” streaming customers.
- Disney is “exploring a free product” for streaming customers, CEO Josh D’Amaro confirmed in a call with investors today.
- D’Amaro, who succeeded Bob Iger as Disney’s chief in March, said that a free Disney-owned streaming service would help Disney reach more “price-sensitive” customers, which is a “strategic priority” for Disney, according to a transcript of the call.
What happened
“Unlike a lot of our AVOD [advertising video on demand] competitors, we’re fairly well-sold, meaning more inventory would actually help us accelerate our ad revenue growth,” D’Amaro said. A free streaming product might also generate more interest in Disney+ subscriptions, the executive added.
Why it matters
A free tier could help Disney+ stand out from other subscription video-on-demand platforms, like Netflix and HBO Max, amid frustration with constantly rising prices .
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.