CBS Sees the Light and Ditches Advertising for SVoD Service

CBS is doing something that broadcasters might consider blasphemous: recognizing that consumers don’t like seeing for ads, it’s dropping advertising for its CBS All Access SVoD OTT service with the launch of a new $9.99 tier.

CBS All Access, which the broadcaster launched in 2014, offers a library of on-demand programming from the broadcaster for $5.99 – along with advertising, similar to Hulu’s subscription OTT model. That runs counter to consumers’ overt and seemingly growing dislike of ads, particularly in a subscription setting.

The new tier costs subscribers $4 more, but offers viewers access to the 7,500-video library of CBS programming, including Web-only series “Star Trek: Discovery”, without adverts. CBS said it will also be reducing the ad load for its $5.99 tier for on-demand programming, and will even offer some “CBS Classics” without ads. But its live streaming channel feeds will keep the ads across both tiers.

“The foundation of CBS All Access is not only about giving CBS fans access to more of the content they want, but also giving them more choice in how they watch their favorite CBS programming,” said Marc DeBevoise, president and chief operating officer of CBS Interactive. “The addition of a commercial-free plan gives our subscribers even more ways to customize their CBS viewing experience – from which devices to whether they watch in or out of the home, and now with commercials or without.”

CBS has about a million OTT subscribers across its All Access platform and another million subscribed to its premium Showtime OTT service.

Feature image courtesy CBS