In this article, Disney announced on Wednesday that it has approximately 157 million global monthly active users who watch ad-supported content on its streaming platforms – Disney+, Hulu, and ESPN+. This figure comprises 112 million users in the domestic market and represents an average per month over the past six months.
While traditional TV networks have established methods for measuring ratings and viewership, there is currently no industry standard methodology for determining the size of the global streaming advertising audience. Disney’s Advertising unit aims to establish a consistent global approach and methodology for estimating ad-supported audience numbers. The company shared this update and additional insights into its ad-supported streaming business at the annual CES tech conference in Las Vegas, a significant event for the advertising and media industry.
Rita Ferro, Disney’s president of global advertising, stated, “Disney is uniquely positioned at the intersection of premium sports and entertainment content, reaching valuable audiences on a global scale through ad-supported streaming.” She emphasized the company’s commitment to transparency by providing details on the methodology used to calculate the engaged global ad-supported monthly active users.
According to Disney, the metric is based on active accounts across its three streaming services that have watched ad-supported content continuously for more than 10 seconds. The total number of users is estimated by multiplying each active account by the average number of users per account. The cumulative estimated active users are not de-duplicated, meaning individuals who subscribe to multiple platforms may be counted more than once.
Media companies are increasingly focusing on monetizing their streaming services, with advertising playing a crucial role in revenue generation. While many platforms initially offered subscription-based services without ads, they have since introduced more affordable ad-supported tiers for consumers.
Disney’s CEO Bob Iger has emphasized the company’s push towards ad-supported tiers. Disney+ initially launched with ads in late 2022 and subsequently raised prices for commercial-free options. Hulu was among the first platforms to introduce an ad-supported option, and Disney+ recently followed suit.
As of November, Disney reported 122.7 million Disney+ Core subscribers, excluding Disney+ Hotstar in India and other regional markets. Hulu had 52 million subscribers, while ESPN+ had 25.6 million paid subscribers. Although Disney has not disclosed the exact number of subscribers opting for the ad-supported option on each platform, executives revealed that over half of new U.S. Disney+ subscribers were choosing the cheaper, ad-supported tier.
During an earnings call in November, Disney noted a slight decrease in the average revenue per user for domestic Disney+ customers due to a higher proportion of customers on the ad-supported tier. Executives expressed confidence in streaming as a significant growth area for the company.
In the September period, Disney’s combined streaming business, including Disney+, Hulu, and ESPN+, reported operating income of $321 million, a notable improvement from the previous year’s loss of $387 million during the same period. Disney is scheduled to release its fiscal first-quarter earnings on Feb. 5 before the market opens.
