Disney+ ad-supported tier will be available later this year. Disney predicts that The AVOD (Advertising Video on Demand) will attract more people to subscribe to its services. The ad-run pace is now set at four minutes per hour, lower than Hulu’s. The ads will start with 15- and 30-second ad spots. On debut, Disney’s ad-supported app will not allow alcohol or political advertising, according to the Variety. It also won’t enable advertisements from competing streaming services or entertainment studios.
Disney CFO Christine McCarthy at the 9th Annual MoffettNathanson Media and Communications Summit stated that they had more AVOD(Advertising Video on Demand) than SVOD(Subscription video on demand) subscribers based on the experience curve that they’ve witnessed with Hulu’s growth. They expect about the same growth percentage for both Disney+ and Hulu. According to Rita Ferro, head of Disney Advertising Sales, the corporation will have a lot of parental controls over advertising to children.