Prime Highlights:
Disney reports 157 million global monthly active users on its ad-supported streaming tiers, including 112 million in the U.S.
Advertising is a crucial revenue driver for Disney’s streaming services.
Key Background:
Disney has revealed that its ad-supported streaming platforms—Disney+, Hulu, and ESPN+—now boast an estimated 157 million global monthly active users. Of these, 112 million are located in the U.S., with the number reflecting average monthly engagement over the last six months. This is the first time the company has provided such detailed insights into the size of its ad-supported user base.
The rise of ad-supported content is part of a broader industry trend, where advertising is becoming a key driver of profitability for streaming services. In its update, Disney highlighted that its advertising unit has worked on developing a consistent methodology for estimating the size of its global ad-supported audience. The company is keen to set a benchmark for the industry, offering transparency into its approach during the CES tech conference in Las Vegas.
Disney’s president of global advertising, Rita Ferro, emphasized the company’s strategic advantage, saying that Disney “sits at the intersection of world-class sports and entertainment content.” The company’s unique positioning allows it to serve highly valuable audiences at scale through its ad-supported offerings.
The metric used by Disney includes active accounts across its streaming services that have watched ad-supported content for more than 10 seconds. The number of active accounts is then multiplied by the estimated number of users per account to determine the total viewership. Importantly, the figure includes some duplication, as users who subscribe to more than one platform may be counted more than once.
In recent years, Disney has focused on pushing consumers toward its ad-supported tiers, with CEO Bob Iger noting that the company has raised prices for ad-free subscriptions. Disney’s strategic shift toward these more affordable tiers is proving successful, as more than half of new U.S. Disney+ subscribers have opted for the ad-supported version, providing a positive outlook for future growth. Disney’s overall streaming business, which encompasses Disney+, Hulu, and ESPN+, has shown profitability with an operating income of $321 million for the September quarter, a significant improvement from the previous year’s loss of $387 million.
