Streaming grows with ad tiers, news from Disney+ & Netflix
Welcome back to Subscriptions Weekly! This week, we learn how streaming services like Disney+ and Netflix drive acquisition through ad-supported plans. We also review Meta’s new subscription plan to meet data protection regulations in Europe, X’s new subscription tiers, and Tinder’s short-term subscription options for younger users.
Disney says subscribers are happy to sit through some ads
The ad-supported plan on Disney+ has already become just as popular as the ad-free version. From March to September 2023, 50% of new subscribers chose this plan over the commercial-free option. While Disney+ joined other streaming services in raising prices of ad-free subscriptions, it left its ad-supported plan the same to encourage more sign-ups. Learn more on The Verge.
Netflix ad-supported tier has 15M subscribers, triple the previous count
Netflix shared that its cheaper, ad-supported tier has amassed 15 million global monthly active users as it laps a year since launching. The move has proved fruitful so far. In the company’s Q3 report, Netflix said it added 8.8 million subscribers, and that expects a similar bump in subscriber growth in the fourth quarter. Read more on CNBC.
Meta responds to European regulations with subscription option
Beginning in November, the subscription option allows users to continue using the platforms for free with ads or to subscribe and stop seeing them while ensuring their information is not used for advertising purposes. This is in response to the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA). Learn more on PYMNTS.
X is launching two new subscription tiers
X, formerly known as Twitter, is introducing two new tiers for its subscription offering in order to bring in additional revenue. Premium+ costs $16/month, offers the “largest reply boost” and removes ads from the For You and Following feeds. Basic and costs $3/month and allows users to edit posts and post longer text and videos. Read more on TechCrunch.
Tinder taps short-term subscriptions to tackle Gen Z’s commitment phobia
Tinder is tapping weekly subscriptions to capture the spending of younger consumers, who tend to be hesitant to lock themselves into longer-term plans. President and CFO Gary Swidler says these plans are a “long-term win,” rather than “some short-term thing,” and that the company has been testing weekly subscription models on other of its dating platforms. Learn more on PYMNTS.
🎦 Watch on demand: The secrets to profitable subscription growth
Hear from @CNBC, @Condé Nast, @Sling, @Cinemark, and more world-renowned brands in this multi-session virtual summit. Get best practices to unlock profitable growth and long-term relationships–from pricing to payments to compliance. Watch now.
🎁 Subscription gifting: Everything you should know
Our latest survey shows that 53% of gift givers and 51% of recipients are considering subscriptions as presents this year. How much will they spend? How can you turn one-time gift recipients into long-term consumers after a gift subscription expires? Check out the report.
From the Recurly blog
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