Approximately 157 million global users are streaming content with ads, according to Disney.

• Disney reported that its streaming platforms have approximately 157 million monthly active users worldwide on their ad-supported tiers, with 112 million of those users being based in the United States.
• For the first time, the company has disclosed the number of viewers who watch ad-supported content on Disney+, Hulu, and ESPN+.
• Advertising has become a key driver of profitability for streaming services.

Disney+, Hulu, and ESPN+ have an estimated 157 million global monthly active users watching ad-supported content.

Over the past six months, the number of domestic users has averaged 112 million per month.

Despite the existence of standard methods for measuring ratings and viewership on traditional TV, there is no universally accepted approach for determining the size of global streaming advertising audiences.

The company's Disney Advertising unit is working to establish a worldwide approach and methodology for estimating ad-supported audience numbers. The update and additional information about its ad-supported streaming business are being presented at the annual CES tech conference in Las Vegas, which is a major event for the advertising and media industry.

"Disney's president of global advertising, Rita Ferro, announced in a news release that the company is at the intersection of world-class sports and entertainment content, with the most valuable audiences in ad-supported global streaming at scale. Additionally, Disney wants to provide greater transparency into the methodology used to estimate its engaged global ad-supported monthly active users."

The company explained that the metric is calculated by multiplying the number of active accounts on Disney's three streaming services that have viewed ad-supported shows and movies for more than 10 seconds by the estimated number of users per account. The estimated active users are then added across the apps without de-duplication, meaning users who subscribe to multiple platforms could be counted more than once.

Growth in ad-supported tiers

Recently, streaming platforms have shifted their focus to generating profits through advertising, with many platforms offering ad-supported tiers in addition to their initial subscription services.

Disney CEO Bob Iger has stated that the company aims to direct its customers towards its ad-supported tiers. Since the launch of Disney+ with ads in late 2022, the company has increased the prices of its commercial-free options.

Disney's Hulu initially offered an ad-supported streaming option, while Disney+ recently introduced a similar tier.

In November, Disney reported 122.7 million Disney+ Core subscribers, excluding Disney+ Hotstar in India and other countries in the region. Hulu had 52 million subscribers, while ESPN+ had 25.6 million paid subscribers.

Disney+ executives stated in the November earnings call that more than half of new U.S. subscribers were opting for the ad-supported tier, indicating a positive outlook for the future.

The average revenue per user for domestic Disney+ customers decreased from $7.74 to $7.70, according to Disney, due to a higher proportion of customers on the cheaper, ad-supported tier and wholesale offerings.

In November, executives expressed confidence that streaming would drive significant growth for the company.

During the September quarter, the company's combined streaming business, comprising Disney+, Hulu, and ESPN+, generated an operating income of $321 million, a significant improvement from the $387 million loss recorded in the same period the previous year.

Disney will report its fiscal first-quarter earnings on Feb. 5 before the bell.