In its first quarter 2024 earnings call, The Walt Disney Company DIS CEO Bob Iger highlighted the success of the ad-supported Disney+ offering, which has attracted over 1,000 global advertisers in its first quarter.
What Happened: Iger, in the earnings call, highlighted the strong advertising technology and unparalleled scale of Disney. He also noted the successful expansion of the ad-supported Disney+ outside the U.S., with launches in EMEA and Canada.
"Disney also has a great advertising story to tell, with unparalleled scale and very strong advertising technology. And our ad-supported Disney+ offering is off to a great start. We successfully expanded outside the U.S. with launches in EMEA and Canada, and grew to over 1,000 global advertisers hours in the first quarter," he said.
The CEO attributed the success of Disney’s streaming services to the exceptional content created by the company. In 2023, six of the top 10 most streamed movies across all streaming platforms in the U.S. were Disney productions.
The company also received 27 Golden Globe nominations and won top prizes at the Primetime Emmy Awards.
Disney+ offers a basic plan at $7.99 per month, which includes ads, and a premium plan at $13.99 per month, offering an ad-free viewing experience.
Why It Matters: The surge in ad-supported Disney+ subscriptions comes at a time when the streaming industry is witnessing a shift towards ad-supported models.
Last month, Netflix reported that it ended the fourth- quarter with 260.28 million global paid members, which was up 12.8% year-over-year. The streaming giant also added 13.12 million net paid subscribers during the quarter.
At the time, the company stated it intended to persist in investing and expanding its ad-supported platform. However, it acknowledged that it is not a “primary driver” for revenue growth.
Meanwhile, Disney announced the launch of its ad-supported Disney+ plan in August 2022, aiming to provide greater consumer choice at a variety of price points to cater to the diverse needs of its viewers and appeal to an even broader audience.
This move was seen as a strategic response to the changing dynamics of the streaming market, with a growing emphasis on ad-supported models.
Disney’s latest success with its ad-supported Disney+ offering is particularly noteworthy in light of the broader industry trends.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Editor’s Note: This story has been updated to reflect corrections. Remarks initially attributed to Disney CEO Bob Iger in Q4 have been replaced with those from the Q1 conference call.
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