While Disney+ has recently opted for a new strategy aimed at modifying its offer, in order to increase its number of subscriptions, its competitor Netflix is also considering it, via a price drop. However, not sure that this will not please his followers.
The turn of Disney+
In its competition with Netflix, Disney+ recently announced that it is modifying its offer and lowering its price list. Today, to obtain the services of the streaming platform, you have to pay €8.99 per month or €89.99 per year.
However, Disney will launch, at the end of the year, a formula of its Disney + subscription video service integrating advertising, a new offer that the entertainment giant sees as one of the “cornerstones” of its development. This cheaper offer should allow the entertainment giant to increase its number of subscribers. Objective: more than 230 million by 2024, or 100 million more than the current 130 million subscribers.
Born “never say never“
Placing advertising in the middle of a series episode? Netflix does not see the interest for the moment, but is not against, in the future. During a professional conference, its technical director, Spencer Neumann specified:
Let’s be clear, we are not religiously opposed to advertising,” he said, adding that we should not “never say never” although the current subscription model has paid off so far. “It’s hard to ignore what the competition is doing, but that kind of operation doesn’t make sense to us right now.”
The Los Gatos firm has opted for an increase in its Essential, Standard and Premium offers. A shift that has actually paid off so far, since the number of aficionados continues to grow, to currently reach 222 million.
Nevertheless, as competition is increasingly fierce, with the arrival of new competitors, Netflix must think of strategies to deal with it, and AVoD could thus be a solution. Concretely, a new cheaper offer could allow the N red to increase its income.
It would be the Essential package, the cheapest established at 8.99 euros per month that could be impacted. Those who opted for the Standard and Premium subscriptions, meanwhile, could still enjoy the ad-free service.
Ads: Rejected in France, but accepted in the USA
We know that carefully observing the competition is a key strategy in the success of a company, and given the tremendous growth of Disney+ since its launch, taking a look in the rear view mirror seems necessary.
In France, ad breaks are very popular with the public, and only a few specific platforms like Mango and Pluto TV or developed by groups from television like TF1, M6 or Altice offer AVoD today.
On the other hand, in the United States, advertisements are commonplace in the heart of the programs, and are an integral part of the consumption habits of Americans.. Moreover, according to some studies, AVoD has surpassed traditional SVoD in the United States in terms of viewing time.
For your part, would you be willing to pay less for your Netflix subscription, but regularly seeing your favorite programs being interrupted by unwanted advertisements? Feel free to share your feelings in the comments.
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