### Insights into Disney+ Subscribers: A Look at Ad-Supported Levels
During a recent earnings call, Disney CEO Bob Iger unintentionally revealed critical information about the company’s streaming service, Disney+. While discussing the platform’s expansion and pricing models, Iger disclosed that 37% of Disney+ subscribers in the U.S. are using the ad-supported tier, with the global figure at 30%. This insight is significant, as it’s uncommon for a streaming service to divulge such detailed subscriber statistics, especially in a competitive environment where rivals like Netflix have generally kept such information confidential.
#### The Background of the Information Release
The earnings call, originally aimed at providing details on Disney’s financial results, took an unexpected direction when Iger’s comments on the ad-based video on demand (AVOD) figures came to light. After sharing this information, Iger quickly expressed doubt about whether he was authorized to reveal those numbers, highlighting the sensitive nature of what was disclosed. This verbal slip not only emphasizes the fierce competition among streaming services but also reinforces the critical role of subscriber data in informing corporate strategies.
#### Pricing Approaches and Market Developments
Iger’s forthrightness went beyond subscriber figures and touched upon the company’s pricing tactics. Over the last year, Disney+ has implemented notable price hikes. In December 2022, the cost for the standard Disney+ tier increased from $7.99 to $11.99 alongside the launch of a new ad-supported tier priced at $7.99. Since that time, the standard tier’s price has escalated further, hitting $13.99 and then $15.99 as of last month, effectively doubling since the service’s debut.
This pricing approach seems to be a strategic decision by Disney to motivate subscribers to shift towards the ad-supported tier. Iger remarked that the price increases for the standard tier were aimed at influencing consumer choices towards the more lucrative AVOD model. He stated that the company’s aim isn’t solely to increase prices but also to enhance average revenue per user (ARPU) by attracting more advertisers to streaming platforms.
#### The Competitive Environment
Disney+ faces the challenge of maneuvering through the intricate landscape of pricing and subscriber retention in the streaming industry. Rivals like Apple TV+ have also seen similar price increases, with their subscription fees now at $9.99 per month. Nevertheless, Apple TV+ has not yet rolled out an ad-supported tier, which could restrict its ability to benefit from the rising demand for ad-based revenue streams within the streaming market.
As streaming platforms continue to evolve, the interplay between subscription pricing, content availability, and advertising profits will be vital for companies like Disney. The insights provided by Iger during the earnings call offer a look into the strategic choices that are influencing the future of Disney+ and the overall streaming ecosystem.
#### Summary
Bob Iger’s accidental disclosure during the earnings call not only sheds light on the subscriber dynamics of Disney+ but also underscores the ongoing transformations within the streaming sector. As companies modify their strategies to align with shifting consumer preferences and market needs, an increased focus on ad-supported models is anticipated. For Disney, the key challenge will be to sustain subscriber growth while managing the intricacies of pricing and competition in a rapidly saturating marketplace.
