CEO Bob Iger’s Rare Slip-Up Exposes Highly Confidential Disney Stats

In an unexpected moment during Disney’s Q4 2024 earnings call, CEO Bob Iger inadvertently disclosed key data about Disney Plus’ ad-supported tier, offering rare insight into the streaming giant’s subscriber base. The slip provided a deeper look into the role of ad-supported subscriptions in Disney’s streaming strategy as it navigates an increasingly competitive market.

Breaking Down the Numbers

While addressing a question about Disney Plus’ growth, Iger revealed that 37% of the platform’s U.S. users and 30% of its global subscribers are on the ad-supported tier. Though he didn’t provide exact figures, Disney’s Q4 2024 report, which listed 56 million U.S. subscribers and 122.7 million worldwide, allows for a quick calculation: around 20.7 million U.S. users and 36.8 million global subscribers are on Disney Plus’ ad-based plan.

This revelation puts Disney’s ad-supported numbers in perspective against rival Netflix. The latter recently reported 70 million users on its ad-supported tier out of a total subscriber base of 282.7 million, translating to 25% of its global audience. While Netflix’s total numbers are nearly double those of Disney Plus, the higher percentage of Disney Plus users opting for the ad-supported tier highlights its appeal among budget-conscious viewers.

A Candid Moment from Iger

Iger’s reveal wasn’t part of the script. Later in the call, he acknowledged the slip, quipping during a hot-mic moment: “I don’t know if I was supposed to disclose those AVOD [advertising-based video on demand] numbers.”

The admission, while unplanned, offers a rare glimpse into Disney’s internal metrics. These kinds of insights are typically guarded, making Iger’s moment of candor all the more intriguing for industry watchers.

A Strong Quarter for Disney

Iger’s slip overshadowed what was otherwise a triumphant earnings call. During the July-to-October period, Disney Plus added 4.4 million subscribers globally, while Hulu saw a gain of 900,000 users.

On the theatrical side, Disney dominated the global box office with two billion-dollar hits: Deadpool and Wolverine and Inside Out 2. Both films have already joined the Disney Plus library, expanding the platform’s lineup as it continues to position itself as a go-to streaming destination.

Navigating Industry Challenges

Despite the wins, Disney is facing familiar industry challenges. In mid-October, Disney raised prices across its streaming platforms, including Disney Plus, Hulu, and ESPN Plus. The hikes come as part of a broader effort to increase profitability, even as cost-conscious consumers show a growing preference for ad-supported plans.

Additionally, Disney has rolled out a password-sharing crackdown similar to Netflix’s, introducing fees for users who share their accounts with individuals outside their households. These changes, coupled with rising subscription costs, underscore the importance of offering affordable options like the ad-supported tier to maintain subscriber growth.

The Rise of Ad-Supported Streaming

The data shared by Iger, intentional or not, highlights the increasing significance of ad-supported streaming models. While Netflix leads in absolute numbers, Disney’s higher proportion of ad-tier users globally suggests that its pricing strategy is resonating with a distinct audience.

This trend reflects a broader industry shift, as platforms increasingly lean on ad-supported tiers to capture users unwilling to pay premium prices. For Disney, the ad-based plan could be a key tool in competing with larger rivals like Netflix while navigating a turbulent streaming landscape.

What’s Next for Disney Plus?

With the streaming wars showing no signs of slowing down, ad-supported tiers are likely to play an even greater role in shaping the industry’s future. Disney’s early traction in this area signals a potential path forward, even as rising costs and competitive pressures continue to challenge its dominance.

As Disney prepares to release its Q1 2025 earnings report early next year, all eyes will be on how its ad-supported strategy evolves—and whether the percentages Iger let slip will climb even higher. In a rapidly shifting market, even unintentional disclosures can offer valuable clues about the future of streaming.

Do you think that Disney was left upset at Bob Iger for disclosing this information?