Disney weighs free, ad-supported streaming, says it has sold out Super Bowl ad spots
Disney is considering a free streaming product as advertising takes a bigger role in making streaming profitable.
Disney's consideration of a free, ad-supported streaming option marks a significant shift in the company's approach to its streaming business. As the streaming market becomes increasingly saturated, companies are looking for new ways to drive revenue and profitability. Advertising has long been a key component of traditional television, and Disney's move suggests that the company believes it can be a major factor in making streaming profitable as well.
The fact that Disney has sold out its Super Bowl ad spots is a testament to the enduring power of live events to draw in advertisers. The Super Bowl is one of the most-watched television events of the year, and advertisers are willing to pay top dollar to reach its massive audience. As Disney explores the potential of ad-supported streaming, it will be important to watch how the company balances the needs of advertisers with the expectations of its viewers, who may be sensitive to the amount of advertising they are exposed to.
The move towards ad-supported streaming is part of a broader trend in the industry, as companies look for ways to reduce the financial burden on consumers while still generating revenue. Other streaming services, such as Hulu and Peacock, have already incorporated ad-supported options into their offerings. As Disney navigates this new approach, it will be important to watch how the company's ad-supported streaming option is received by consumers, and how it affects the overall streaming landscape.
Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.