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How Disney Streaming Will Approach its New Ad Tier

With the recent increase of ad-supported subscription tiers, streaming services must find new ways to form workflows that best meet both advertising regulatory standards and the data needs of their advertisers. Nadine Krefetz, Consultant, Reality Software and Contributing Editor, Streaming Media, talks with Jackie Donaldson, Streaming Strategy Consultant, about the most important things to consider with ad tier workflows.

“Everybody's heard that we're launching an ad tier in Disney+ by the end of the year,” Donaldson says. “What that means is there's a huge lift in terms of identifying the user.” Donaldson emphasizes that because Disney+ is a global platform, it is essential to understand the different regulations around advertising in various regions and how to differentiate what that means for a platform’s users.

“The existing Disney+ environment is simply a kid's profile and then everybody else, but because of the regulations here in the U.S., and, quite frankly, in other regions, it's even stricter, we have to find a workflow that identifies the age of the participants, so that we're serving the correct ads and abiding by the laws in every region. That required us to rethink our entire identity and user workflow from beginning to end,” Donaldson says.

“So does that mean you also have younger kids and older kids as well?” Krefetz asks.

“That’s right,” Donaldson says. “For example, COPPA (Children's Online Privacy Protection Rule) here in the U.S. does have regulations around kids that are 13 and younger, and specifically that means you cannot share any of their data. And the problem with that is a lot of advertisers don't want to produce ads that do not provide them with the data share information. So, it's really a new model on how you approach the advertisers in the market.” Donaldson highlights that because Disney’s platform and brand are family-friendly, “We want to make sure that our users are protected and that they're not seeing any advertising that does not meet both the regulatory [and] also our own internal standards of ethics for users that we would consider to be children, which is good.”

Learn more about ad-supported streaming at Streaming Media West 2022.

Watch full-session videos from Streaming Media Connect 2022.

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