Netflix and Disney+ ad-supported tiers are not that attractive

Jan 20, 2023Updated Jun 4, 20252 min read

While Apple may probably be venturing into figuring out an ad-supported tier for Apple TV+, Netflix and Disney+ are seeing some unsatisfying results in acquiring subscribers for their ad-supported plans. Variety reports that a recent survey is indicating not many people are willing to go for an ad-supported tier on Netflix or Disney+.

The survey also indicates that Netflix’s “Basic With Ads” tier is not reaching its goals. The cheaper plan with ads was launched back in November. The survey indicates that 5% of current Netflix subs were thinking of downgrading to the ad-supported plan in December, and only 6.5% of non-members indicated that they would join Netflix in the next month because of its ad-supported plan.

On the other hand, Disney+’s ad-supported tier is not doing much better, according to the survey. Results show 19% of the non-subscribers were “very” or “somewhat” likely to pick a Disney+ ad-supported tier at some point (keep in mind, the question did not specify a time frame for subscribing).

6% of current Disney+ subscribers said they planned to downgrade. Basically, a bit more people than Netflix, but still, pretty much a similar percentage.

Overall, by surveying 2,089 people, 13% only wished to downgrade to an ad-supported tier for their subscription plans.

Interestingly, when the survey divided people by earnings, those who earned $100,000+ a year were the most likely to downgrade (19%) versus those earning under $50,000 (11%).

All in all, this trend shows that the interest in ad-supported subscription plans may not be as high as one would suppose. We will have to wait and see how these plans grow over time (and much more time is needed for some conclusive results, for sure), but for now, maybe Netflix or Disney+ will have some food for thought as to how to make these plans more attractive.

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About the author

Mei Ling Tan

Contributor · RetailNews.asia

Mei Ling Tan is the Editor of Retail News Asia, where she leads the editorial team in delivering in-depth coverage of Asia’s dynamic retail landscape. With over a decade of experience in business journalism, Mei Ling is known for her sharp analysis, deep industry insights, and commitment to uncovering the stories behind Asia’s most innovative retail brands. Before joining Retail News Asia, Mei Ling held senior reporting roles at regional business publications, covering everything from consumer trends to digital transformation in retail. A graduate of the National University of Singapore with a degree in Communications and New Media, she combines journalistic integrity with a strong understanding of evolving market forces. Outside the newsroom, Mei Ling is a frequent speaker at industry panels and a mentor for young journalists.

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