Sina science and technology news Beijing time on March 4 morning news, it is reported that Disney launched before the "Disney+" into the global network video market, according to the latest information of a person familiar with the matter, the company is ready to launch a brand new membership products, cheaper, but will be inserted advertising.
Disney plans to become profitable in its direct-to-consumer business (primarily online video) by 2024, and the launch of the lower-priced memberships will reignite the growth of paid video memberships.
Before Disney, Warner Media (owned by AT& T), Paramount Worldwide, NBC Universal, Discovery and others have launched membership products with interladders, hoping to keep competing for members. Disney has also joined the industry's new trend.
About a decade ago, the online video industry was dominated by an ad-free membership model, represented by Netflix. Disney's move is also a sign that the industry is moving away from ad-free memberships to ad-free memberships, which also have a business model that more closely resembles traditional TV channels with interstitials.
Behind the industry shift is a new recognition among video executives that consumers are willing to watch a certain amount of video ads if they can watch online video at a low price or even for free.
In its Peacock Video service, NBC Universal offers a free plug-in membership, while Amazon has a completely free ad-supported video service called IMDB TV in addition to paying members.
But until now, Netflix has been an exception, not offering a low-cost plug-in membership. Before the company's management also made it clear that the future will not launch plug-in advertising members.
Members of Disney+ currently charge $8 a month. By contrast, competitors such as Discovery+ and Paramount+ offer plug-in memberships that cost as little as $4.99 a month.
It's worth noting that Disney owns three major online video products, including Hulu and ESPN+. Hulu currently has an added-in membership that costs $6.99 a month.
Disney+ is expected to attract more consumers to sign up for memberships through the introduction of low-priced plug-in memberships, which could help Disney expand revenue and offset the rapidly rising costs of video content production, according to media reports.
A Disney spokesman had no comment on the news.
Disney has said it will spend more than $8 billion to $9 billion a year on content through 2024 on Disney+. Over the past five quarters, Disney+ 's programming and production spending has increased 78% to $920 million per quarter, according to the company's disclosure.
Disney is taking several steps to spur membership growth in addition to premium content. Late last year, the company rolled out a deal that gave consumers discounts for Disney+ or ESPN+ memberships if they bought Hulu Live memberships (TV channels that can be watched live on the Web).
The benefits are evident, with Disney+ membership growing 11% in the U.S. in the most recent quarter, up from roughly 2% to 3% growth over the past four quarters.
Disney+ had 130 million paying members worldwide at the end of the fourth quarter, 42.9 million of them in North America, according to the company. Disney+ plans to have 230 million to 260 million paying members worldwide by 2024, according to the company's stated goals.