LONDON: The ad-supported version of the Disney+ service launched Thursday, attracting major advertisers from different sectors, bringing in new revenue as Walt Disney Co. strives to push its streaming business into profitability.
Disney Advertising President Rita Ferro said more than 100 brands, from Mattel Inc. to Marriott Hotels & Resorts, are participating in the launch, which Disney has been promoting to marketers and ad buyers since its May.
The company is under pressure to turn a profit on its streaming business, which posted a $1.5 billon loss in the company’s most recent quarter. Investor unhappiness about deepening losses hammered the company’s stock and helped set the stage for the ouster last month of Chief Executive Bob Chapek, and return of longtime Disney leader, Bob Iger.
Advertising introduces a second source of revenue for Disney+, to supplement subscription fees. The company’s other streaming services, Hulu and ESPN+, already have commercials.
A $3-a-month price increase also took effect Dec. 8, bringing the price for the ad-free version of Disney+ to $10.99. Disney+ with ads costs $7.99. Researcher Kantar projects that one out of four Disney+ subscribers could switch to the less-expensive version of the service with advertising.
Chief Financial Officer Christine McCarthy told investors the company does not expect the advertising-supported tier to have a “meaningful impact” until later in its 2023 fiscal year.
As subscriber growth slows in North America, Netflix similarly introduced commercials to bolster revenue and support its estimated $17 billion annual content spend. Other streaming services, such as HBO Max, Paramount+ and Peacock, also offer ad-supported versions of their streaming services, emulating the business model that has long supported the television business.
Ferro told Reuters that Disney+ will carry four minutes of advertising time per hour, in 15 and 30 second spots, and limit the number of times the same ad will appear over the course of a day or week.
“A brand like Starbucks will have no more than one commercial an hour, no more than two a day,” she said. “We’ve asked advertisers for multiple versions of creative. Even if they air two a day, you won’t see the same ad.”
Disney plans to introduce features that will allow advertisers to target consumers by region, gender and age.
Disney+ streaming service launches with major advertisers
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Disney+ streaming service launches with major advertisers
- The $7.99-a-month with ads version launches amid video streaming industry slowdown
DCO and Arab News partner to combat digital misinformation, explore AI’s impact on media
KUWAIT CITY: The Digital Cooperation Organization (DCO) and the international Saudi newspaper Arab News have signed a Letter of Engagement aimed at strengthening knowledge and expertise exchange on the impact of artificial intelligence in the media sector, as well as leveraging expert insights to develop best practices to combat online misinformation amid accelerating technological advancements.
DCO said this step aligned with its efforts to strengthen collaboration with international media institutions to support responsible dialogue around digital transformation and contribute to building a more reliable, inclusive, and sustainable digital media environment.
Commenting on the agreement, Deemah AlYahya, Secretary-General of the Digital Cooperation Organization, said: “At a moment when AI is reshaping how truth is produced, distributed, and trusted, partnership with credible media institutions is essential.”
She added that “working with Arab News allows us to bridge technology and journalism in a way that protects integrity, strengthens public trust, and elevates responsible innovation. This collaboration is about equipping media ecosystems with the tools, insight, and ethical grounding needed to navigate AI’s impact, while ensuring digital transformation serves people and their prosperity.”
Faisal J. Abbas, Editor-in-Chief of Arab News, emphasized that the partnership enhances media institutions’ ability to keep pace with technological shifts, noting that engagement with representatives of DCO Member States enables deeper understanding of emerging technologies and regulatory developments in the digital space.
He added: “DCO’s commitment to initiatives addressing online content integrity reflects a clear dedication to supporting a responsible digital environment that serves societies and strengthens trust in the digital ecosystem.”
The Letter of agreement was signed on the sidelines of the Fifth DCO General Assembly held in Kuwait City under the theme “Inclusive Prosperity in the Age of AI”, alongside the second edition of the International Digital Cooperation Forum, held from 4–5 February, which brought together ministers, policymakers, business leaders, entrepreneurs, and civil society representatives from more than 60 countries to strengthen international cooperation toward a human-centric, inclusive, and sustainable digital economy.
