Disney Reveals 157 Million Global Users Streaming Content with Ads

Disney has announced that approximately 157 million global monthly active users are engaging with ad-supported content across its streaming platforms, including Disney+, Hulu, and ESPN+. This figure represents an average calculated over the past six months and encompasses 112 million users from the domestic market alone.

The announcement, made during the Consumer Electronics Show (CES) in Las Vegas, highlights Disney’s efforts to redefine and bring transparency to how global streaming advertising audiences are measured. Unlike traditional television ratings, which follow established methodologies, the streaming industry continues to grapple with the absence of a standardized approach to calculating viewership and audience metrics for advertising.

In a statement, Rita Ferro, Disney’s President of Global Advertising, emphasized the company’s leadership in this area. “Disney sits at the intersection of world-class sports and entertainment content, with the most high-value audiences in ad-supported global streaming at scale,” she said. Ferro added that Disney’s advertising division aims to set a new industry benchmark by providing clear insight into the methodology used to estimate ad-supported audience numbers.

The reported audience metric is based on active accounts across Disney+, Hulu, and ESPN+ that have viewed ad-supported content for a continuous period of at least 10 seconds. To estimate total audience size, Disney multiplies the number of active accounts by an estimated number of users per account. However, this calculation does not include de-duplication, meaning users who access multiple platforms may be counted more than once.

Strategic Growth in Ad-Supported Streaming

The move toward ad-supported tiers reflects a broader industry trend as media companies increasingly rely on advertising revenue to make their streaming businesses profitable. Initially, many platforms focused exclusively on subscription-based models with no commercials. However, rising operational costs and competitive pressures have driven a shift toward offering lower-cost, ad-supported options to attract and retain a broader audience.

Disney has been a leader in this transition. Hulu, which has long offered an ad-supported subscription tier, was one of the pioneers of this model. More recently, Disney+ introduced an ad-supported tier in late 2022, coinciding with efforts by the company to steer more users toward these cheaper subscription options. CEO Bob Iger has publicly supported this strategy, with pricing adjustments on ad-free options aimed at encouraging uptake of the ad-supported alternatives.

As of November, Disney+ reported 122.7 million Core subscribers, a figure that excludes Disney+ Hotstar users in India and certain other markets. Hulu reported 52 million subscribers, and ESPN+ recorded 25.6 million paid subscribers. While Disney has not disclosed precise figures for ad-supported subscriptions across its platforms, executives noted in an earnings call that more than half of new Disney+ subscribers in the U.S. are opting for the ad-supported tier.

Financial Impacts and Future Prospects

The growth in ad-supported streaming has influenced Disney’s revenue structure. Average revenue per user (ARPU) for Disney+ in the domestic market saw a slight decline, dropping from $7.74 to $7.70 in the most recent quarter, driven by a higher proportion of subscribers on lower-priced, ad-supported plans and wholesale offerings. Despite this, Disney executives remain optimistic about the long-term profitability of their streaming business.

In the September quarter, Disney reported combined operating income of $321 million for its streaming segment, which includes Disney+, Hulu, and ESPN+. This marks a significant improvement compared to a loss of $387 million in the same period the previous year. Executives underscored their confidence in streaming as a “significant growth area” for the company moving forward.

Disney is set to report its fiscal first-quarter earnings on February 5, where further updates on its streaming performance and advertising strategies are expected. As the company continues to innovate in audience measurement and expand its ad-supported offerings, it remains a dominant force in the evolving landscape of global streaming.

Share This to: