Disney CEO Bob Iger Says Ad-Supported Disney+ Saw 'Great Start' With 1K Global Advertisers
Portfolio Pulse from Ananya Gairola
Disney CEO Robert Iger announced a significant growth in ad-supported Disney+ subscriptions, with about 2 million new subscriptions in Q4, reaching a total of 5.2 million. Over half of the new U.S. subscribers chose the ad-supported option, which also saw a 34% increase in service usage over six months. This growth highlights Disney's strong position in the streaming industry, especially with its advanced advertiser technology. Meanwhile, Netflix reported a 12.8% year-over-year increase in global paid members, with 260.28 million by the end of Q4 and a 13.12 million net paid subscriber addition during the quarter. Netflix continues to invest in its ad-supported platform but does not see it as a primary revenue driver.
February 08, 2024 | 4:00 am
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POSITIVE IMPACT
Disney's ad-supported Disney+ service gained 2 million new subscriptions in Q4, indicating strong growth and consumer acceptance of the ad-supported model.
The significant increase in subscriptions for Disney's ad-supported Disney+ offering indicates a positive consumer response and a strong competitive position in the streaming market. This growth, especially in the context of the broader industry trend towards ad-supported models, suggests potential for increased revenue and market share, positively impacting Disney's stock in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Netflix reported a 12.8% year-over-year increase in global paid members, reaching 260.28 million, with a net addition of 13.12 million subscribers in Q4.
Netflix's continued growth in global paid memberships and its focus on expanding the ad-supported platform, despite not being a primary revenue driver, indicates a strategic positioning to cater to diverse consumer preferences. This growth and strategic focus are likely to positively impact Netflix's stock in the short term, as it demonstrates the company's adaptability and potential for sustained growth in the competitive streaming market.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80