Disney+ & Netflix struggling to get subscribers on ad-supported tiers
According to a new report out of Variety, it appears that both Disney+ and Netflix are struggling to get subscribers to sign up for their new, cheaper ad-supported tiers. Apparently, knocking a few bucks off of the monthly price wasn’t enough.
This is based off of a study conducted by SmithGeiger, who asked streaming users if they were preparing to downgrade from an ad-free tier to an ad-supported tier. They found that just 5% of Netflix customers were planning to switch to the new ad tier. And about 6.5% of non-subscribers said they would subscribe to the new plan in the next month.
The numbers were a bit better for Disney+, with about 6% saying they might switch, and about 19% saying they were likely or very likely to sign up for an ad-supported tier.
Why aren’t these ad-supported plans working?
You may be wondering why these ad-supported plans aren’t going as well as initially thought? Well, for Netflix in particular, it seems like many customers are not wanting to see ads on their Netflix plan which has never had ads before. The other big reason is likely because this “cheaper” ad plan also has less content. That could be a big reason why Netflix and Disney+ had big differences in that survey.
Everyone hates ads. And it’s engrained in customers heads that if they are seeing ads, then the service should be free. Like The Roku Channel, Pluto TV or Tubi TV. All of which are free services, with the costs being off-set by ads. That’s not the case with Netflix nor Disney+. In fact, it’s just a couple of bucks. Now discovery+’s ads tier is doing better because it is half the price of its ad-free tier. They (Netflix and Disney+) will need to differentiate the two plans a bit more, if they want the ads plan to really take off.
According to a new report out of Variety, it appears that both Disney+ and Netflix are struggling to get subscribers to sign up for their new, cheaper ad-supported tiers. Apparently, knocking a few bucks off of the monthly price wasn’t enough.
This is based off of a study conducted by SmithGeiger, who asked streaming users if they were preparing to downgrade from an ad-free tier to an ad-supported tier. They found that just 5% of Netflix customers were planning to switch to the new ad tier. And about 6.5% of non-subscribers said they would subscribe to the new plan in the next month.
The numbers were a bit better for Disney+, with about 6% saying they might switch, and about 19% saying they were likely or very likely to sign up for an ad-supported tier.
Why aren’t these ad-supported plans working?
You may be wondering why these ad-supported plans aren’t going as well as initially thought? Well, for Netflix in particular, it seems like many customers are not wanting to see ads on their Netflix plan which has never had ads before. The other big reason is likely because this “cheaper” ad plan also has less content. That could be a big reason why Netflix and Disney+ had big differences in that survey.
Everyone hates ads. And it’s engrained in customers heads that if they are seeing ads, then the service should be free. Like The Roku Channel, Pluto TV or Tubi TV. All of which are free services, with the costs being off-set by ads. That’s not the case with Netflix nor Disney+. In fact, it’s just a couple of bucks. Now discovery+’s ads tier is doing better because it is half the price of its ad-free tier. They (Netflix and Disney+) will need to differentiate the two plans a bit more, if they want the ads plan to really take off.
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