This week saw the annual Goldman Sachs' media conference where Walt Disney Company CEO Bob Chapek said Disney+ growth will be choppy in the short-term, and that the delta variant of COVID-19 has contributed to production delays.
In addition to that update - according to MovieWeb - Bob Chapek said Disney are also looking into adding advertisements on Disney+. So far customers have enjoyed ad-free viewing experiencing subscribing to Disney+, but that could change in the future. Bob Chapek explained his thoughts with investors hinting that ads could be coming to Disney+ in the future.
"I think what’s driving it is that combination of great content that draws a lot of eyeballs and draws a lot of interest and a lot of viewership. But at the same time, really sophisticated modeling and technology that we have that enables our advertisers to target exactly who they want, when they want and how they want. Now, in terms of this extendibility to our other platforms, I think it’s important to realize the different target audiences of the platforms.
And for example, Disney+ has a lot of kids that watch it, and the taste for us to consider advertising on something like Disney+ would be completely different than it might be on a Hulu. So then again, you take that individual, no one size fits all type approach that we are looking at across the world. And you say where do we have that opportunity? Where do we not have that opportunity? And then how does that change over time as we look at combining things or keeping things separate à la carte? And so all this is malleable. Again, it’s soft clay right now. And we are very pleased with what we are seeing with addressable advertising on Hulu.
And I would say that does that lead us to think big thoughts about what could happen in other markets across the world? Certainly, it does. But for right now, again, really happy with sort of the à la carte mode that we have with this bundling opportunity and keeping things the way they are, but that doesn’t say that in the future, we might not look at different opportunities for an increased level of addressable advertising across our platforms."
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