BET+ Launching Ad-Supported Tier This Summer; How Will it Effect Potential Sale of Streamer?
Users of BET+, which specializes in content made for Black audiences by Black content creators, will soon have more options for watching the streaming platform. BET+ has announced that it will launch an ad-supported tier of the streamer on June 25 at 12 noon ET.
The new tier will cost $5.99 per month, which is 40% cheaper than its current ad-free tier, which comes in at $9.99 monthly. The plan will be called “BET+ Essential,” and feature the entire library of BET+, including a livestream of the BET Awards, which also take place on June 25. In all, the service offers more than 2,000 hours of content from creative forces such as Tyler Perry, Gabrielle Union, Lee Daniels, Mary J. Blige, and Kevin Hart.
“A primary focus for BET+ has been delivering consumers the content they want, how they want it, and when they want it, so the natural evolution of the service was to provide consumers with a more economical ad-integrated experience,” BET president and CEO Scott Mills said. “We are delighted to expand access to our premium streaming service by introducing this ad-supported tier.”
The service will still offer a seven-day free trial on both its ad-supported and ad-free tiers. At launch, ads will be a mix of 15 and 30-second commercials playing before and during programming and customized to limit viewing interruption.
“This lower priced, ad-supported tier of BET+ will not only deliver to our audiences, but to the advertising community, which has long expressed an appetite for more non-linear options in reaching the highly coveted, digital-native Black consumer market,” BET media sales president Louis Carr said. “As the preeminent Black streaming service, only BET+ Essential can deliver reach, resonance, relevance, and scale. In fact, 80 percent of BET+ members watch from a connected TV, and, with the launch of our ad-supported option, we offer advertisers the perfect addition to linear, reaching even more Black viewers when they are most engaged.”
The move to introduce an ad-supported streaming plan to BET+ comes amidst efforts by its parent company Paramount Global to sell the entire BET brand. In March, it was first reported that Paramount was potentially looking to sell BET Media Group, which includes the cable channel BET, BET+ and VH1. Since then, several potential buyers have emerged, including BET+ minority-owner Tyler Perry, media mogul Byron Allen, sports and entertainment figures like Shaquille O'Neal and 50 Cent, and others.
An ad-supported tier could make BET+ a more valuable proposition to those potential buyers. Ad-supported streaming tiers bring in less in terms of subscription dollars, but they generate significantly more average revenue per user (ARPU) than ad-free streaming because of the money made from advertisers. A recent survey found that nearly 33% of all streaming subscriptions were for ad-supported plans, showing their lower cost and limited ad loads compared to traditional TV are highly popular among customers.
There’s still a long way to go in sale talks for BET Media Group, but Paramount is likely doing itself a big favor by launching an ad-supported tier of BET+. It will boost the profitability of the service, making it a more attractive product to potential buyers and putting more money into its own pockets until a sale is made.
BET+
BET+ is an online streaming service from BET Networks, launched as a joint venture with Tyler Perry Studios. As one of the largest online subscription video-on-demand services focused on the Black audience and lovers of Black culture, BET+ features more than 1,000 hours of premium content including new, exclusive programming, iconic TV series, movie favorites, as well as documentaries, and specials from BET Networks. BET+ offers original programming from Tyler Perry, including his plays, series, and box office hits.