Disney’s CFO, Christine McCarthy spoke at the Morgan Stanley 2022 Technology, Media & Telecom Conference yesterday. Among her comments we learned that character meet and greets are returning and Disney’s feelings about Genie+ and why it’s fine to nickel and dime people stating: “Some people have more money than they have time and others have more time than they have money.“
During her presentation she also discussed why offering an ad supported version of Disney+ makes Disney more money, while at the same time spinning that it’s good for the lower income people.
She indicated that Disney had “preconceived notions about what consumers wanted.” Meaning they thought that consumers would want ad-free experiences, which most do. However, as she continues it feels more and more like Disney justifying the option so they can pocket more money.
She also stated:
“We also had an incredible amount of advertiser demand.”
There it is. This really isn’t about giving people a cheaper option, because it’s only $3 less. It isn’t free and ad supported like many other services. You still have to pay about $5 a month instead of almost $8 a month.
Sure, Disney will take anyone that signs on for that lower price. They want to gain subscribers, but if it goes anything like Hulu, the prices will go up. In the course of a couple of years Hulu with live TV has almost doubled in price. Even if you pay for “ad free” there are still ads on older shows. Now if you pause, they have static advertisements on the screen while you pause.
How long do you think it will be until they start doing that with Disney+?
This isn’t about making the content cheaper for customers. It’s about making more money from the advertisers. Kareem Daniel, Chairman, Disney Media and Entertainment Distribution stated previously:
“More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”
The deal keeps changing. Sure, you can pay more to go ad free. No one is making you take the ad supported version. However, I have zero doubt that the ads will start appearing on the “ad-free” version in time, just like Hulu.
The new ad supported offering is set to role out later this year in our market and be in place for other markets in 2023. Disney previously indicated that more information will come after they do their Upfront with potential advertisers. Because as much as they say this is for the consumer, it’s not. It’s for the advertisers to give them more money.
What do you think? Comment and let us know!
Source: Comicbook.com
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