Disney has revealed a major milestone in the ever-evolving landscape of streaming entertainment, reporting that 157 million global monthly active users are engaging with ad-supported content across its platforms. This figure, representing an average calculated over the last six months, includes a substantial 112 million users from the United States. This milestone demonstrates Disney’s reach and influence as it continues to adapt and innovate in a competitive digital environment.
The announcement, made during the prestigious Consumer Electronics Show (CES) in Las Vegas, reflects Disney’s commitment to transparency and leadership in audience measurement. As traditional television faces a steady decline and streaming gains prominence, the lack of a standardized methodology for tracking advertising audiences remains a pressing issue. Disney’s Advertising division has addressed this challenge by developing a proprietary system to estimate audience sizes for its ad-supported platforms, including Disney+, Hulu, and ESPN+. This methodology aims to establish a new benchmark for the industry, ensuring accuracy and consistency in a space that has long lacked a unified approach.
Rita Ferro, President of Global Advertising at Disney, emphasized the company’s pioneering role in the industry. “Disney sits at the intersection of world-class sports and entertainment content, offering unparalleled access to high-value audiences on a global scale,” she said. Ferro highlighted Disney’s efforts to provide advertisers with a clear and reliable framework for understanding audience engagement, showcasing the company’s dedication to setting industry standards.
The methodology behind Disney’s audience estimation involves identifying active accounts that stream ad-supported content for at least 10 seconds continuously. These accounts are then multiplied by an estimated number of users per account to calculate total audience figures. Notably, this approach does not de-duplicate users who subscribe to multiple platforms, such as Disney+ and Hulu, meaning some individuals may be counted more than once. While this creates a comprehensive picture of engagement, it also underscores the complexity of accurately measuring audiences in the streaming era.
Disney’s move toward ad-supported tiers marks a strategic shift in its approach to streaming. Initially, many platforms, including Disney+, relied on subscription-only models without advertisements. However, the evolving market landscape and increasing competition have prompted a pivot toward hybrid revenue models that incorporate both subscriptions and advertising. Hulu, one of the earliest adopters of ad-supported streaming, has served as a template for Disney’s broader efforts. Disney+ followed suit with the launch of its ad-supported tier in late 2022, signaling a commitment to reaching price-sensitive consumers while bolstering advertising revenues.
CEO Bob Iger has been a vocal advocate for this strategy, which includes pricing adjustments to steer customers toward more affordable, ad-supported options. During Disney’s November earnings call, executives reported that more than half of new U.S. Disney+ subscribers were choosing the ad-supported tier. This trend underscores the growing appeal of such offerings, particularly in an era when consumers are seeking value without compromising access to premium content. As of November, Disney+ Core had 122.7 million subscribers, excluding Disney+ Hotstar in India and other markets. Hulu reported 52 million subscribers, while ESPN+ had 25.6 million paid subscribers.
Although Disney has not disclosed the exact number of ad-supported users for each platform, the growing preference for these tiers is reshaping the company’s revenue structure. Average revenue per user (ARPU) for domestic Disney+ subscribers fell slightly, from $7.74 to $7.70, due to an increased mix of ad-supported customers. However, this shift has positively impacted overall financial performance. In the September quarter, Disney’s streaming segment generated $321 million in operating income, a stark contrast to the $387 million loss reported during the same period the previous year.
As Disney prepares to release its fiscal first-quarter earnings on February 5, the company’s ad-supported strategy remains a cornerstone of its growth initiatives. By leveraging its extensive content portfolio and introducing innovative audience measurement tools, Disney is not only maintaining its leadership but also redefining the streaming industry’s standards. With 157 million global users engaging with its ad-supported content, the company is well-positioned to shape the next chapter in the evolution of digital entertainment.
