Disney explores adding a free tier to Disney Plus

Disney has confirmed it is exploring the possibility of adding a free, ad-supported tier to its Disney Plus streaming service. During Wednesday's earnings call, CEO Josh D'Amaro said the company is “exploring a free product for consumers.” A free tier, he added, could drive growth and help the service reach audiences who are more sensitive to price. D'Amaro acknowledged there was “nothing specific to announce today,” but said it is “definitely something that we're considering.”

The idea has been discussed internally for some time. In July, Business Insider reported that Disney's chief product and technology officer, Adam Smith, raised the possibility of a free streaming tier during a company town hall. The deliberations come as major paid streaming services, including Disney Plus, Netflix, and HBO Max, face intensifying competition from free platforms, especially YouTube. YouTube has been working to resemble traditional television more closely by introducing “Stations” that play content around the clock and letting creators arrange videos into “seasons.”

Disney's broader strategy for Disney Plus includes a major expansion next year. D'Amaro described plans to make the platform the “digital centerpiece” of the company, bringing together games, merchandise, and other experiences, while adding more personalization, exclusivity, and benefits for subscribers. The company also said it is partnering with TikTok to incorporate Disney-centric fan-created content into Disney Plus's short-form video feed.

With audiences increasingly gravitating toward free streaming options, Disney's move to explore a free tier suggests the company is looking for new ways to broaden its subscriber base and compete in a crowded market.