Disney+ will lean on ads to cut its financial losses. In June, Disney+ will begin cracking down on password-sharing. This move—which is a similar tactic Netflix used to grow its nascent ad-supported viewer base—could help convert freeloaders to its cheaper ad tier. Disney+ has higher ad prices than its corporate sibling Hulu, but Disney+ generates less ad revenues per ad-supported viewer because it accounts for less time spent.
Peacock and Paramount+ will use live sports programming to increase ad revenues. Live sports will likely have a bigger impact on Peacock than they will for Paramount+. This is because Peacock’s sports programming features a mix of linear TV retransmissions and streaming exclusives, whereas Paramount’s sports programming is available on CBS.
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