Disney has unveiled a significant milestone, announcing that its ad-supported streaming platforms—Disney+, Hulu, and ESPN+—collectively attract an estimated 157 million global monthly active users. This figure, calculated as an average over the past six months, underscores Disney’s expansive reach in the increasingly competitive streaming market. Of these users, 112 million are based in the United States, further solidifying the company’s dominance in its domestic market.
The announcement was made during the Consumer Electronics Show (CES) in Las Vegas, one of the most influential technology events in the world and a key forum for advancements in advertising and media. As the streaming industry continues to outpace traditional television, it faces a persistent challenge: the lack of an industry-standard methodology for measuring global advertising audiences. Disney is addressing this issue head-on through its Disney Advertising unit, which has developed a proprietary approach to estimating ad-supported audience size. The company described this methodology as globally consistent, reflecting its ambition to set a new benchmark in transparency and precision.
According to Rita Ferro, Disney’s President of Global Advertising, this initiative is a step toward greater accountability within the industry. “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 goal is to offer the advertising and media industries deeper insight into how engaged audiences are calculated, setting an example for competitors.
The calculation of active users involves identifying accounts that have streamed ad-supported content for at least 10 consecutive seconds. The number of active accounts is then multiplied by an estimate of users per account to arrive at the total audience size. Disney’s metric does not eliminate duplication, meaning users who subscribe to multiple platforms—such as both Disney+ and Hulu—may be counted more than once. While this approach ensures comprehensive data, it also highlights the complexity of accurately measuring streaming audiences in an ecosystem defined by overlapping subscriptions and varied viewing habits.
The rise of ad-supported tiers has become a cornerstone of Disney’s broader strategy to enhance profitability across its streaming portfolio. When platforms like Disney+ first launched, they primarily relied on ad-free subscription models. However, as the streaming market has matured and competition has intensified, advertising has emerged as a crucial revenue driver. Disney has responded by introducing lower-cost subscription tiers that incorporate ads, thereby broadening its appeal to price-sensitive consumers while maintaining a steady stream of revenue from advertisers.
Hulu, which has long offered an ad-supported option, serves as a successful blueprint for this strategy. Following in its footsteps, Disney+ launched its ad-supported tier in late 2022. Disney’s leadership, including CEO Bob Iger, has been vocal about the importance of these tiers, both for their affordability and their ability to attract a diverse audience. Price adjustments on commercial-free plans have further incentivized users to choose ad-supported options. According to Disney’s November earnings call, over half of new Disney+ subscribers in the U.S. are opting for the ad-supported tier, a trend that executives believe signals strong growth potential.
In addition to Disney+, Hulu reported 52 million subscribers, while ESPN+ recorded 25.6 million paid subscribers as of November. The company’s Disney+ Core subscription base, excluding Disney+ Hotstar in India and other Asian markets, stood at 122.7 million. Although Disney has historically refrained from disclosing the exact number of ad-supported subscriptions for each platform, the growing preference for these tiers underscores their relevance in a competitive marketplace.
The financial impact of these developments is already evident. During the September quarter, Disney’s combined streaming businesses posted an operating income of $321 million. This marks a remarkable turnaround from a $387 million loss in the same period the previous year. While the average revenue per user (ARPU) for domestic Disney+ subscribers dipped slightly from $7.74 to $7.70 due to the higher proportion of ad-supported users, the overall growth trajectory remains promising. Executives have expressed confidence that streaming will continue to be a significant driver of the company’s future success.
As Disney prepares to release its fiscal first-quarter earnings on February 5, the company’s strategic emphasis on ad-supported streaming is poised to remain a focal point. By combining innovative audience measurement techniques with a commitment to transparency and a diverse content portfolio, Disney is setting a high standard for the industry. With 157 million global users now engaged in its ad-supported ecosystem, the company’s vision for streaming’s next chapter is clearly taking shape.
