How Disney sells streaming TV to advertisers

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  • A leaked presentation shows how Disney pitches its ad-supported streamers against HBO Max and others.
  • It’s trying to get advertisers interested before an ad-supported Disney+ tier launches.
  • The presentation indicates that Hulu and Disney+ are unmatched against competitors like Netflix.

Disney is making a big push to sell advertisers on its streaming services as the online video market heats up with Netflix and Disney readying ad-supported tiers.

In a recent presentation to advertisers obtained by Insider, Disney pointed to the growth of ad-supported streaming subscriptions and Hulu’s dominance in the video-on-demand (AVOD) advertising space as evidence of the opportunity to an ad-supported Disney+. It calls its streamers unmatched by competitors like Netflix, Amazon Prime and HBO Max.

Insider information valued AVOD viewers would represent more than 54% of all digital video viewers in the United States this year.

Disney’s 20-page game showcases its ad-buy deals and promotes its partnership with The Trade Desk which allows brands are targeting automated ads on Disney’s linear and streaming TV properties, including Hulu, ABC and ESPN. The deck does not specify what inventory will be available or what it charges for ads.

The presentation promotes Hulu at a time when the fate of this streamer within the Disney portfolio is murky.

Disney is expected to acquire Comcast’s remaining 33% stake in Hulu in 2024, but the company has yet to disclose its plans. Wall Street wonders how Hulu will ultimately fit into the Disney portfolio with Disney+ being its flagship streaming platform, especially since Hulu is limited to the United States.

In its sales pitch, Disney boasted strong subscriber growth and unparalleled viewership on its ad-supported platforms. In his latest earnings reportthe company said Disney+ added 14.4 million subscribers, to 152 million subscribers, and total streaming subscribers reached 221 million, surpassing Netflix’s latest subscriber total just over 220 million.

Disney plans to raise prices on its streaming platforms ahead of the launch of its ad-supported plan, Disney+ Basic, which could boost adoption of the new tier. Basic will initially cost $7.99, the same as its ad-free version. The cost of its ad-free version will then increase by $3, and the prices for Hulu without ads will increase by $2 and Hulu with ads by $1.

Below are key slides from Disney’s presentation to advertisers. Disney declined to comment.

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