Subscription vs. Ad-Supported: Netflix, Disney+, and Max One Year After Their Ad Tier Expansions

MoffettNathanson analyst Michael Nathanson provides a detailed financial analysis of how Netflix, Disney+, and Max have performed one year into their expanded ad-supported tier strategies, including CPM trends, subscriber mix shifts, and advertiser demand signals. The report finds that Netflix's ad tier has outperformed expectations on fill rate but underdelivered on targeting sophistication, while Disney+ benefits from ESPN sports inventory integration. The analysis includes implications for traditional linear TV upfront budget allocation.

MoffettNathanson analyst Michael Nathanson provides a detailed financial analysis of how Netflix, Disney+, and Max have performed one year into their expanded ad-supported tier strategies, including CPM trends, subscriber mix shifts, and advertiser demand signals. The report finds that Netflix's ad tier has outperformed expectations on fill rate but underdelivered on targeting sophistication, while Disney+ benefits from ESPN sports inventory integration. The analysis includes implications for traditional linear TV upfront budget allocation.