Walt Disney Co. (DIS) says 157 million users worldwide are now subscribed to the ad-supported tier of its streaming platforms — Disney+, Hulu and ESPN+.
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That number includes 112 million users domestically within the U.S. and is an average per month. The Mouse House says that it’s providing the update to give analysts and investors insights into its advertising-supported streaming business. The company gave the update at the Consumer Electronics Show (CES) in Las Vegas.
“We wanted to be the first to offer our industry greater transparency into the methodology used to estimate our engaged global ad-supported monthly active users,” said Rita Ferro, Disney’s president of global advertising, in a news release.
Moving Ads Online
While advertisements have long been a staple of traditional broadcast television, they are still relatively new to streaming platforms. Disney’s Hulu was one of the first streaming platforms to offer an ad-supported option to subscribers. More recently, Disney+ introduced an ad-supported tier.
The ad-supported tiers typically offer cheaper monthly subscription rates than streaming tiers that are free of advertisements. Disney CEO Bob Iger has said that the company is trying to steer its customers toward ad-supported tiers in an effort to boost revenues. The company raised prices on its commercial-free streaming options since launching Disney+ with ads in late 2022.
Last November, Disney said it had 122.7 million Disney+ subscribers, while Hulu had 52 million subscribers, and ESPN+ had 25.6 million paid subscribers. Disney next reports its earnings on February 5 after markets close. DIS stock has risen 24% in the last 12 months.
Is DIS Stock a Buy?
The stock of Walt Disney Co. has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 17 Buy and six Hold recommendations issued in the last three months. The average DIS stock price target of $126.84 implies 15.56% upside from current levels.
