"Disney’s prowess as an entertainment powerhouse is undisputed. Aaron LaBerge, chief technology officer of the Disney Media & Entertainment Distribution (DMED) division, argues that the company also has also built an industry-leading competency in ad tech.
Over the last several years, LaBerge’s team has created its own advertising-delivery stack from the ground up, centered on the proprietary Disney Ad Server. The company deployed the new Disney Ad Server on Hulu last year — and it’s now also powering Disney+ with ads, which launched last month. Currently, the Disney Ad Server delivers some 500 million ad impressions per day.
“What you saw with ads on Disney+ was the first product to launch on that ad server from an end-to-end perspective,” says LaBerge.
Why did Disney build its own proprietary technology for digital ads? According to LaBerge, owning that piece of the chain gives the company greater flexibility and control, in order to prioritize delivery behavior for ad clients and its own business. At the same time, the Disney Ad Server is designed to be able to integrate with partner ad solutions — on Disney’s own timetable, without having to rely on a third-party vendor, as some streaming rivals do. (Netflix, for example, has teamed with Microsoft to run ads off the Xandr platform, which Microsoft acquired from AT&T.)
The development of the Disney Ad Server is “focused on our continued commitment to the advertising business,” LaBerge says.
So far, the Mouse House hasn’t disclosed how many people have taken Disney+ Basic With Ads ($7.99/month, priced 27% less than the no-ads plan at $10.99/month) since it launched Dec. 8 in the U.S., or a timeline for the international expansion of the cheaper product.
Execs will likely shed some light on the Disney+ ad-supported tier when the Mouse House reports December 2022 quarter earnings (Q1 of Disney’s 2023 fiscal year) on Feb. 8. It will be the first call with returning CEO Bob Iger — who resumed the helm after the Disney board abruptly booted Bob Chapek from the Magic Kingdom in November. Prior to that, the company this week (on Wednesday, Jan. 25) plans to provide an update on its advertising ops with the livestreamed Disney Advertising Tech & Data Showcase, leading up to its May upfronts presentation for marketers."
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Aaron LaBerge, CTO of Disney's Media & Entertainment Distribution division, says the company has built an industry-leading competency in ad tech.
variety.com