Discovery+ to Launch Binge Rewards to Give Ad-Free Experience
Discovery+ teased that binge viewers could soon be rewarded with an ad-free experience after watching three consecutive episodes on the platform. “Spot-Lite ads” are described as allowing “advertisers to reward committed viewers with an ad-free environment. Available after viewers binge three episodes in a row, Spot Lite ads deliver the best viewing experience in exchange for the viewer’s attention.”
HBO Max previously told The Streamable that their service was also planning to reward binge-watchers in their own way by giving viewers a “Binge Reward” such as a commercial-free night on their ad-supported platform. Hulu tested a similar strategy.
Some of the other new advertising products on discovery+ include “Green-Light ads” which would show all discovery+ users the same ad as they enter the service, “High-Light ads” which would give an advertiser the entire first ad break, “Lime-Light ads” which will limit the total amount of advertising and give that advertiser a greater spotlight, and “Stop-Light ads” which will be shown when a user pauses their show.
Consumers aren’t as averse to ads as many executives thought. Free streaming services are growing faster than ever. Services like Tubi and Pluto TV are on an absolute tear, gobbling up audience growth and becoming an unstoppable force in the TV ecosystem. According to new research from Hub, 53% of TV watchers spent time with FAST services last month. That’s up 15% over the last two years.
Pluto TV will become a $1 billion business this year. It accounted for the majority of ViacomCBS’s streaming advertising revenue growth in Q3. It’s available in 26 countries and has 54 million active users each month.
We’re also seeing SVOD subscriptions plateau. In the last quarter, Disney+ added just 2.1M subscribers, Hulu added 1M, Netflix added 4M, HBO Max added 1.9M.
Consumers are feeling maxed out on subscription fees, meaning they simply stick with the services they have, “churn” from service-to-service, or supplement their premium subscriptions with the free options.
This suggests that if media companies are looking for revenue growth, the fastest path is to bolster their own free or ad-supported products.
discovery+ vs. HBO Max, Peacock, Paramount+, and Hulu At A Glance (Ad-Included Plans)
|Service||Price||Ads Per Hour||Simultaneous Streams||4K Streaming||Offline Mode||Live Sports|
|Max||$9.99||4 min/hr (none during HBO programming)||3||Select shows & movies on certain devices||Yes||No|
|Peacock||$4.99 (Free for Comcast & Cox Customers)||5 min/hr||3||No||Only on Premium Plus plan||Premier League & WWE|
|Paramount+||$5.99||9-10 min/hr||3||Select shows & movies on certain devices||Only on Premium plan||NFL & Champions League|
|Hulu||$6.99||9-10 min/hr||2||Select shows & movies on certain devices||No||NHL & ESPN+ Upgrade|
|discovery+||$4.99||4-5 min/hr||4||Select shows & movies on certain devices||No||Eurosport, Global Cycling Network, Global Mountain Bike Network, Golf Digest and GOLFTV|
discovery+ is a video streaming service that offers more than 70,000 episodes of 2,500+ current and classic shows from several popular TV brands including Discovery, Investigation Discovery, HGTV, TLC, Food Network, A&E, Lifetime, and History.
The service primarily focuses on non-fiction programming or “reality” TV shows.
discovery+ is available with limited ads for $4.99 / month or ad-free for $6.99 / month.