Disney is set to launch its ad-supported tier of Disney+ on Thursday, and new research from the analysis film Kantar indicates that nearly a quarter of current U.S. subscribers are expected to drop down to the lower-cost version with ads.
The firm conducted an online survey of streaming subscribers in the U.S. in September and found 23% of them would opt for the cheaper Disney+ service with advertising. Around 46 million of the global Disney+ subscriber base of 164 million are in the United States.
This follows Netflix last month launching its own $7-a-month ad-supported version.
Starting Thursday, the price of Disney+ as a stand-alone will rise to $10.99 a month, whilst the new ad-supported plan sits at $7.99. Prices of Disney+ along with Hulu and ESPN+ will continue to be discounted via the Disney Bundle.
Kantar also found Disney+ over-indexed in users who subscribe to multiple outlets, whilst its churn rate sits at a mere 6% for the past quarter. Apple TV+ is now the only one of the major services to offer plans with no ad-supported option.
Source: Deadline