This Is How Much (More) Walt Disney's Ad-Supported Version of Disney+ Could Make
At first blush it seems like a step in the wrong direction. Walt Disney (NYSE: DIS) is a premium brand and should be treated as such. A lower-cost, ad-supported version of Disney+ slated for launch later this year arguably taints the brand, ultimately working against the draw of the Disney name.
It's a concern, however, rooted in worry that need not apply any longer. Consumers really don't mind watching the occasional commercial in exchange for a lower-cost streaming service. Better still, as it turns out, ad-supported streaming services from Discovery (NASDAQ: DISC.A) (NASDAQ: DISC.B) (NASDAQ: DISCK) and Paramount (NASDAQ: PARA) are bearing more fiscal fruit than the ad-free versions of these platforms are.
If you're reading this, then you likely already know Disney is wading deeper into AVOD (ad-supported video on demand) waters. Its Hulu is already offered in an ad-supported version costing $6 per month less than the base price of $12.99 per month for the ad-free version. Now Walt Disney intends to deploy an ad-supported version of its Disney+ platform. The company didn't provide any pricing specifics, but the base price for ad-free Disney+ currently stands at $7.99 per month.
Source Fool.com
