Disney+ expects most subscribers will choose ad-supported plan
Marvin Samuel Tolentino Pineda/iStock Editorial via Getty Images

Subscribers to a Disney+ (NYSE:DIS) service supported by ads are likely to exceed those paying extra for no ads, the company says.
On Disney's earnings call last week, CEO Bob Chapek and CFO Christine McCarthy demurred when asked about the expected mix of an ad-supported service.
Speaking at the MoffettNathanson investor summit Wednesday, though, company execs leaned on their experience with Hulu (DIS) (CMCSA) to suggest that in time, some two-thirds of Disney+ subscribers will be on the discounted ad-supported plan.
The company expects that Disney+ subscriber growth will have a strong second half alongside new content and expanding markets. But as in the call last week, McCarthy cautioned Wednesday that some outsize growth in the first two fiscal quarters may not quite be replicated by the back half of the year.
Looking at audience insight, the company says some 65% of subscribers said the service's movie offerings were the top reason to subscribe. (Movies are being borne out as a Disney+ strength, as the films are consistently taking places on Nielsen's streaming ratings chart, vs. less competitive TV series). Meanwhile, 62% of its viewers 18 and up are adults without kids in the home.
Disney expects that ad load on that part of the service will be a mere four minutes per hour or less, on average. And in the future it is planning for advanced ad experiences and targeting capabilities.
Disney (DIS) made a list of tactical stock selections at Wells Fargo in the media/cable space, due to potential upside to already-strong subscriber forecasts.