Credit: Inside The MagicA rare slip-up by Disney CEO Bob Iger has unintentionally unveiled the number of users subscribed to Disney Plus’ ad-supported tier. During Disney’s Q4 2024 earnings call on November 14, Iger let slip a key detail about the streaming giant’s user base, providing insight into how many people have opted for the platform’s most affordable subscription.
How Many Disney Plus Users Are on the Ad-Supported Plan?
Responding to a question from a Wall Street Journal analyst about Disney Plus’ growth outlook, Iger revealed that 37% of U.S.-based Disney Plus subscribers use the ad-supported tier. On a global scale, that percentage drops slightly to 30%.
Although Iger didn’t share specific subscriber figures, Disney’s Q4 2024 earnings report made it easy to calculate. In the U.S., Disney Plus boasts 56 million subscribers, which means approximately 20.7 million of them are on the ad-supported plan. Globally, with a total of 122.7 million subscribers, about 36.8 million users opt for the cheaper, ad-based option.
How Does Disney Plus Compare to Netflix?
Disney Plus’ ad-supported tier numbers pale in comparison to Netflix, its biggest streaming competitor. Netflix recently disclosed that 70 million of its 282.7 million global users are subscribed to its ad-based tier, equating to 25% of its total user base.
While Netflix’s ad-supported subscriber count is nearly double that of Disney Plus, the percentage of ad-supported users on Disney’s platform (30% globally) surpasses Netflix’s 25%.
This indicates that Disney Plus’ cheaper tier may be resonating with budget-conscious viewers, particularly in the U.S., where a significant portion of its audience is taking advantage of the ad-supported plan.
A Hot-Mic Moment for Iger
Iger’s revelation wasn’t planned. During a hot-mic moment later in the call, he acknowledged his accidental disclosure, saying: “I don’t know if I was supposed to disclose those AVOD [advertising-based video on demand] numbers.” While the comment may not have been intentional, it offered a rare look into the performance of Disney Plus’ growing ad-supported base.
Streaming and Box Office Wins for Disney
Despite Iger’s faux pas, Disney’s Q4 2024 earnings report showcased several impressive achievements. On the streaming front, Disney Plus added 4.4 million new subscribers globally, while Hulu, Disney’s sister platform, gained 900,000 users during the same period.
At the box office, Disney enjoyed massive success with Deadpool and Wolverine and Inside Out 2, both of which grossed over $1 billion globally. These blockbuster hits have already joined the Disney Plus library, giving subscribers the chance to watch them at home if they missed them in theaters.
Price Hikes and Password Crackdowns
However, not all the news is rosy for Disney subscribers. In mid-October, Disney raised subscription fees across all its streaming platforms, including Disney Plus, Hulu, and ESPN Plus. This price hike follows a global trend of increasing costs in the streaming industry.
Additionally, Disney’s crackdown on password sharing has added further costs for users. A new password-sharing fee, which charges users to share their account with individuals outside their household, has made owning a Disney Plus subscription more expensive.
With these changes, Disney is clearly betting on its ad-supported tier to attract budget-conscious viewers who may be deterred by rising costs. It’ll be interesting to see if the percentage of ad-supported users increases when Disney releases its Q1 2025 earnings report early next year.
Disney’s Growing Ad-Supported Tier
While Disney Plus’ ad-supported tier lags behind Netflix in total numbers, its higher percentage of ad-supported users globally shows that its strategy is appealing to a specific segment of its audience. As streaming services continue to evolve, Disney’s tiered subscription model could play a critical role in sustaining and growing its user base, especially in an increasingly competitive market.
For now, Bob Iger’s candid moment has given us a rare glimpse into the inner workings of one of the world’s biggest entertainment companies, shining a light on the growing importance of ad-supported streaming in Disney’s overall strategy.
Do you think Bob Iger meant to share this news?