The news: Disney has 157 million global viewers watching content with ads across its suite of streaming services, it said this week.

• Disney said the figure was a monthly average over the last six months across Disney+, Hulu, and ESPN+. The company has 112 million ad-supported US viewers. During the company’s Q3 2024 earnings call, CEO Bob Iger accidentally revealed that 37% of US Disney+ subscribers used its ad-supported tier.
• However, the company said its methodology does not de-duplicate users who subscribe to more than one platform, leading to overcounting.

Competing for ad viewers: Disney’s announcement comes several months ahead of the 2025 Upfronts, when it will compete with networks and streaming rivals like Netflix for advertisers’ business. The company’s large ad-supported audience and legacy relationships will help it attract spending during the crucial period.

• Though the 157 million figure includes duplicates, the number puts Disney far ahead of Netflix—which launched its ad-supported tier around the same time—in the race for subscribers. In November, Netflix said it has 70 million global monthly active ad-supported users.
• Streamers have pushed consumers toward ad-supported tiers by increasing costs for ad-free subscriptions and bundling with other services, making these tiers the default access point for streaming content. While those efforts initially annoyed users, demand for lower-cost entertainment and a growing tolerance for streaming ads has reduced their negative impact.
• Disney, with its suite of streaming services and wide array of content, has a unique advantage in bundling and attracting cost-conscious consumers. That lead is only set to grow now that it plans to merge with Fubo.

Our take: Disney is positioned well to capture ad spending at this year’s Upfronts. With premium, blockbuster programming and a slew of sports rights, the company can attract a wide array of brands eager to appear alongside its high viewership content.

• We expect US connected TV ad spending to surpass traditional TV ad spending for the first time in 2028, marking a significant shift in the balance of power in media.
• That spending growth is driven in part by the glut of new ad space from streaming services. Next year, Disney will command 10% of US CTV ad sales across Disney+, Hulu, and ESPN+.

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