Disney+ plans for growth through ad-based tier as Netflix boosts accessibility features

Allison McDaniel | May 19 2022 - 9:40 am PT

Between Disney+ and Netflix, many subscribers are getting more of what they want – a cheaper price with Disney and more features with Netflix. Back in March, Disney announced it will release a cheaper, ad-supported plan later this year on Disney+. With over 100 million subscribers worldwide, the company is anticipating the majority of its users will move to this plan.

Based on our Hulu experience, we actually have more AVOD [ad-supported video-on-demand] than SVOD [subscription VOD] subscribers,” Disney CFO Christine McCarthy said. “We expect about the same percentage for both Disney+ and Hulu, just based on the experience curve that we’ve witnessed.

Disney will raise its revenue through ads

McCarthy adds that Disney+ ad inventory will sell at a premium to increase the average revenue per subscriber. All the details we know so far are that the plan will cost less than the current $7.99/month plan and will debut later this year in the US.

Variety reports the ad-supported tier will only average four minutes per hour of ads – less than Hulu. It will start with 15- and 30-second spots and expand to a “full suite of ad products” in the future. The company expects Disney+ will be in around 150 markets by the end of the year after expanding to more countries this summer.

Netflix upping its accessibility game

Additionally, Netflix is enhancing its audio descriptions, closed captioning, and subtitles to make its content more accessible. In celebration of Accessibility Awareness Day, Netflix is expanding accessibility features and launching a collection of new stories, highlighting people with disabilities.

The company is also creating audio descriptions and subtitles in more languages like Spanish, French, Korean, and Portuguese.

According to director of accessibility at Netflix, Heather Dowdy:

We’re adding more titles because we recognize that folks are finding these inclusive stories all over the world. We have some global hits when you think about with Squid Game and La Casa de Papel, and we want our members and others in other countries to be able to access that content as well.

These enhancements will go to good use. Netflix says 40% of its subscribers regularly use subtitles and have been watching shows like Seinfeld with audio descriptions on.