Streaming Wars: Netflix to Launch Ad-Based Service Cheaper, Earlier Than Disney+

Despite having appeared to be on the back foot for the majority of the year, the streaming giant Netflix announced today that it would launch an ad-supported version of its streaming service one month before The Walt Disney Company is set to launch its ad-friendly tier of Disney+.

According to Deadline, “The company said its new subscription tier, Basic with Ads, will cost $6.99 a month and will launch November 3 in the U.S…less than half the cost of the most popular tier, Standard, which is $15.49 a month.” Disney had previously announced that Disney+ with ads would launch on December 8 and cost $7.99 a month.

But the positives seem to stop there. Statements made by Netflix’s COO, Greg Peters, suggest that the provided experience on the ad-supported streaming option will mimic the price point and also be lower than what consumers could get with Disney+.

According to a blog post, Peters said, “a limited number of movies and TV shows won’t be available [on Basic with Ads]… due to licensing restrictions, which we’re working on.” He elaborated further during a press call and specified that 5-10% of the currently-available titles would be missing due to the fact that pre-existing agreements did not factor in the possibility of an ad-supported tier.

“It’s all based on deals, not a specific studio,” he said. “And again, we’ll work to reduce that number over time.”

Meanwhile, no such content issues appear to be in play with Netflix’s fastest-growing competitor. Disney+’s ad-free “premium” tier will also remain less expensive than ad-free Netflix.

Just a few months ago, it was announced that The Walt Disney Company actually surpassed Netflix in total subscriber numbers in 2022. But that total number of over 221 million subscribers includes those of Disney+, Hulu, ESPN+, and India-centric Disney+ Hotstar. On a pure Disney+ vs. Netflix comparison, Netflix still has more subscribers for the moment. Currently sitting at just over 152 million, Disney’s goal has been to earn 135 – 160 million core Disney+ subscribers by 2024. Click the link below to read our previous coverage.

Read More: Disney Surpasses Netflix Subscriber Numbers

It should also be noted that Disney’s CEO, Bob Chapek, has far grander plans for Disney+ than just life as a streaming service, wanting to use it to further the reach of the Disney Parks Experience.

We at Disney Fanatic will continue to update our readers on Disney+ news and stories as more developments come to light.