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 approach and methodology for estimating ad-supported audience numbers globally. 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, potentially counting users multiple times if they subscribe to more than one platform.
Media companies are increasingly focusing on monetizing their streaming services, with advertising playing a crucial role. While many platforms initially offered subscription-only services, they have since introduced more affordable ad-supported options for consumers.
Disney’s CEO, Bob Iger, has emphasized the company’s push towards ad-supported tiers. Disney has raised prices for commercial-free options since introducing Disney+ with ads in late 2022. Hulu was among the first platforms to offer an ad-supported option, and Disney+ has recently introduced a similar tier.
As of November, Disney reported 122.7 million Disney+ Core subscribers, excluding Disney+ Hotstar in India and other regional countries. 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 mentioned in a November earnings call that over half of new U.S. Disney+ subscribers were choosing the cheaper, ad-supported tier, indicating positive prospects for the future.
During the call, Disney noted a slight decrease in the average revenue per user for domestic Disney+ customers, attributed to a higher proportion of customers on the cheaper, ad-supported tier and wholesale offerings. Executives expressed confidence in streaming as a significant growth area for the company.
In the September period, Disney’s combined streaming business, comprising Disney+, Hulu, and ESPN+, reported operating income of $321 million, a notable improvement from the $387 million loss in the same period the previous year. Disney is scheduled to release its fiscal first-quarter earnings on February 5 before the market opens.
