And then it’s really around that midmarket segment.
You went through a major reorg to reach midmarket advertisers. Can you talk about the importance of reaching those advertisers, some of whom haven’t advertised with Disney before?
We want to make sure that when people want to be in the market and think about launching a new product, launching a new service, they’re like, “Oh yes, and we have to call Disney, because they hear us, they understand us, and they’re involved with us and everything that we’re building,” and that’s been really important. We’ve made a significant impact there. It’s really helped our business.
Earlier this year, Disney had a live Academy Awards moment where Don Julio became the first brand integrated into Jimmy Kimmel’s in-show bits. You also had a Johnnie Walker moment with Ebon Moss-Bachrach at the Emmy Awards. Now, Conan O’Brien is hosting the Oscars. Can you talk about the opportunity there, and will we see more live integrations going forward?
We’ve been doing that for years with the Oscars. The Academy of Motion Picture Arts and Sciences is a great partner with us in looking at ways to deliver for brand partners and those presenting partners that come in and want to be part of the storytelling. A lot is done on the red carpet, sometimes in the green room backstage. And so we look to customize what a brand is looking to experience or create for the fan, for the viewer, or actually even onsite for the nominees to really tailor it to the outcomes that they want. But that continues to be a huge opportunity for us.
On a recent earnings call, Disney CEO Bob Iger said around 60% of all new Disney+ subscribers are going to the ad-supported tier. According to Iger, about 37% of all subs in the U.S. are AVOD (advertising-based video-on-demand) subs, and 30% globally. After saying that information, there was a “hot mic” situation where Iger was heard questioning if he should’ve revealed the statistics. So, should he have?
You’re going to see numbers coming out soon in terms of what exactly those subscribers are. What we are doing is looking at it from a full portfolio approach versus individual platforms. Because with Hulu on Disney+ and ESPN coming on to Disney+, you want to make sure you have the right number in place so you don’t have duplication of numbers. For us, it’s around making sure that we have the right number to put out there. What I heard from what he said was, ultimately, we have, if you look at everyone—because Hulu has been reporting numbers for years—is about 60% or 65% ad-supported tier. We’re getting there with Disney+. There’s room for growth. That’s exciting for us, but we want to make sure—because Hulu is on Disney+ and ESPN is coming—that we have one number that speaks to our full advertising portfolio.