Discovery said it plans to introduce an “Ad-Lite” version of Discovery Plus in the U.K. and Ireland, starting in March.
The Ad-Lite product will offer access to Discovery Plus's unscripted content at a lower price. It will cost £3.99 or €4.99 a month, compared to the ad-free price of £4.99 or €5.99 a month.
The Discovery Plus Entertainment & Sport Pass, which offers subscribers all of Discovery’s free and pay TV channels, exclusive originals plus sports including the Olympics, will remain ad-free on-demand. It costs £6.99 or €6.99 a month.
Discovery said it is the first subscription streaming service to offer an ad supported version in the U.K. a further rollout across Europe and the Middle East is expected later this year.
Streaming services in the U.S. have found that generate more revenue per subscriber with lower-priced ad-supported products.
“Increased SVOD stacking is driving interest in ad-supported options globally and, as the market only gets more competitive, we want to offer UK consumers that same choice and value through Discovery Plus,” said James Gibbons, executive VP and GM for Discovery in the U.K. and Nordics.
"We know there is an appetite for choice amongst our users as research shows us nearly three quarters of Discovery Plus subscribers are open to seeing adverts if it means a reduction in price** and we look forward to launching our new offering in response,” Gibbons said.
Connected TV has become a popular option for advertisers and Discovery will be able to take advantage of that with its new product.
“The move to an Ad-Lite proposition for Discovery Plus in the UK will offer brands omnichannel solutions that reach highly engaged, passionate superfans,” said Katie Coleman, VP, head of advertising and partnerships for Discovery Networks in the UK and Ireland.
“We know that connected TV is where advertiser budgets are growing as they seek to follow viewers beyond linear, traditionally there hasn't been the premium scale available in the UK but over three quarters of consumption of Discovery Plus through connected TV we are able to offer a premium environment with the scale advertisers have been looking for,” she said. ■
