In the fight for streaming Netflix is ahead of Disney+ in the race for advertising revenue in the US next yearaccording to a report by Inside information. So, Netflix could see a 50% increase, That's $1,030 million, compared to Disney's $911.9 million.
This forecast underscores the success of price hikes and anti-password sharing measures that have led to more users joining its ad-supported plan. The streaming service gained almost 9 million subscribers in the last quarter. Advertising accounts for about a third of these new registrations.
Streaming platform prices
On the other hand, the company announced a price increase for its ad-free plans in October. Their goal was to attract more customers to the cheapest promotional offer, which launched in November last year for about $7 per month.
Currently, Netflix manages to sell ads at a higher price than its competitors by taking advantage of pent-up demand from advertisers, who had been waiting for their advertising offer for a long time. Since viewers tend to spend more time per day on Netflix than on other streaming services, the platform's advertising revenue is expected to increase significantly. Disney+ will have less viewing time (8 minutes per day) than Netflix (32 minutes per day) in 2024according to Insider Intelligence forecasts.
Although Disney+ faces challenges, the hope is that the company can close the advertising adoption gap by combining Disney+ and Hulu into a single app. About 5% of American Netflix subscribers receive advertising, compared to 17% for Disney+.