May 25, 2022

2 Reasons Ad-Supported Disney+ Is Going to Crush It

The math behind this particular streaming model makes far more sense than you might suspect, and Disney shareholders should be thrilled about it.

It’s been the source of great debate in recent weeks. On the one hand, Walt Disney (DIS -1.72%) is a premium brand name that commands premium prices for (usually) superior products. A recent announcement that it is planning sometime later this year to start injecting the occasional advertisement into its video streams not only makes for a less-than-desirable viewing experience, but it could also damage the brand’s image. On the other hand, a lower-cost, ad-supported version of Disney+ makes it more accessible to inflation-affected consumers who are growing weary of the relatively high cost of just a handful of streaming subscriptions.

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