Disney Reports 157 Million Global Users Streaming Content with Ads
Disney announced on Wednesday that it has a staggering 157 million monthly active users worldwide tuning into ad-supported content across its popular streaming platforms – Disney+, Hulu, and ESPN+. This figure includes a significant 112 million users in the United States alone, reflecting the average number of viewers per month over the past six months.
Industry Standard for Streaming Measurements
While traditional television networks have long relied on established metrics for ratings and viewership, the global streaming landscape lacks a uniform standard for gauging audience size for advertising purposes. Disney has taken the initiative to address this gap by spearheading efforts through its Disney Advertising unit to develop a consistent approach and methodology for estimating ad-supported audience numbers on a global scale.
Insights from Disney’s President of Global Advertising
In a news release, Rita Ferro, Disney’s president of global advertising, emphasized the company’s unique position at the nexus of premium sports and entertainment content, catering to high-value audiences across its ad-supported global streaming services. Ferro highlighted Disney’s commitment to enhancing transparency by offering industry stakeholders a deeper understanding of the methodology employed to calculate engaged global ad-supported monthly active users.
Methodology for Estimating Active Users
Disney shed light on its methodology, revealing that the metric is derived from active accounts on its trio of streaming services that have consistently viewed ad-supported content for more than 10 seconds. Each active account is then multiplied by the estimated number of users per account to arrive at the total count of users. Notably, the estimated active users are tallied across the platforms without de-duplication, potentially resulting in users being counted more than once if they subscribe to multiple services.
Embracing Ad-Supported Tiers for Profit Generation
Amid a growing focus on profitability within the streaming landscape, media companies have increasingly turned to advertising as a pivotal revenue stream. In a bid to attract a broader audience, many platforms have introduced cost-effective, ad-supported tiers alongside subscription-based models. Disney has actively promoted its ad-supported offerings, with CEO Bob Iger emphasizing the importance of steering customers towards these tiers.
In a shift towards a more ad-friendly approach, Disney has implemented price hikes on its commercial-free options while also expanding ad-supported tiers across its platforms. Notably, Hulu was among the first platforms to introduce an ad-supported option, followed by Disney+ unveiling a similar tier in recent times.
As of November, Disney boasted 122.7 million Disney+ Core subscribers, excluding figures from Disney+ Hotstar in India and other regional markets. Additionally, Hulu surpassed 52 million subscribers, while ESPN+ recorded 25.6 million paid subscribers. Despite not disclosing specific numbers for ad-supported subscribers on each platform, Disney’s executives highlighted a growing preference for the more affordable ad-supported tier among new U.S. Disney+ subscribers, signaling a positive trajectory for the company’s streaming future.
During the earnings call in November, Disney acknowledged a shift in the average revenue per user for domestic Disney+ customers, primarily driven by a higher proportion of subscribers opting for the cheaper, ad-supported tier and wholesale offerings. Executives expressed confidence in the growth potential of the streaming segment, with the combined streaming business comprising Disney+, Hulu, and ESPN+ reporting an operating income of $321 million for the September period, a significant improvement from the $387 million loss in the corresponding period the previous year.
Disney is scheduled to release its fiscal first-quarter earnings on February 5, offering further insights into the company’s streaming performance and financial outlook.
Laura, a devoted Disney fan, shared her excitement upon hearing the news of Disney’s expansive global streaming reach. As a subscriber to Disney+ with the ad-supported tier, Laura appreciates the diverse content offerings and the affordability of the platform, reflecting the broader trend observed by Disney executives. She eagerly anticipates the company’s upcoming earnings report, hoping for continued success in the ever-evolving streaming landscape.
