Ad-supported announcement from Disney earlier this month resulted in an immediate drop in the stock prices. Experts believe strategy change leads to initial disruption but the company may later be able to build up a bigger consumer base.
Disney+ is planning to come up with an ad-supported version of the subscription by late 2022. The financial market reciprocated and stock fall was witnessed by about 4 percent. However, it slightly recovered later and traded at less value by 3.33 percent.
This is an era of streaming services. The COVID-19 pandemic in 2020 paved the path of the segment and Disney+ turned up as one of the leaders. It is seeking to embrace the best possible success either through paid subscription or ad-supported.
However, the launch date and price have not yet been announced. It is learned the new tier may even offer an option without ads that were launched in 2019.
Meanwhile, Disney announced last month its Q1 earnings in the fiscal year of 2022 were more than expected with respect to both revenues and earnings. The revenue was $21.81 billion. The expectation was $18.36 billion. Disney+ added more than 11 million subscribers in the same period. Currently, the total number of Disney+ subscribers is 129.8 million globally.
What is Disney+
It is a subscription-based video streaming service and was originally established in 2015. However, it was launched four years later in 2019 in countries like the Netherlands, Canada and the United States. Later, the service was expanded in Puerto Rico, New Zealand and Australia.
The streaming service was launched in European countries in early 2020 tied up with Hotstar of Star India in India and rebranded as Disney+ Hotstar. Simultaneously, the service was launched in Latin America and a couple of more European countries by the end of the year.
It has about 500 movies and 7,000 TV episodes. These include original films and TV series from Freeform and Disney Channel. The streaming services are adding up more content to its library frequently.
The services are made available on macOS PCs and Windows PCs through web browsers. It is simultaneously made available on the Apple TV, Android TV, Fire TV, Fire HD, Android, Chrome OS and Chromecast devices. Similarly, the Disney+ is made available on Samsung Smart TVs, Vizio SmartCast TVs, LG webOS, Sky Q, PlayStation 4 and 5, Now TV, Xbox One, Windows 10 and more.
Disney+ is headquartered in California's Los Angeles, United States.