Disney+ May Launch Free Ad-Supported Tier to Attract 130 Million Subscribers

Disney CEO Josh D'Amaro hinted during the latest earnings call that the company is exploring a free, ad-supported tier for Disney+. He said such a model could reach viewers unwilling to pay for a subscription, but no launch timeline was provided.

D'Amaro explained that the free tier is seen as a way to expand the service's reach among price-sensitive customers, aligning with Disney's strategic focus on growing its audience. He also noted that, unlike many ad-supported competitors, Disney+ already has strong ad sales, so additional inventory would help accelerate advertising revenue growth. Finally, a free offering could drive subscriber growth at the top of the funnel for Disney+.

Neither Apple TV+ nor Netflix currently offers a completely free tier, while services like Tubi, The Roku Channel, and YouTube provide free content. Disney+ has approximately 130 million global subscribers and is among the most-watched streaming platforms in the United States.

In a separate move, Disney signed a deal with TikTok that allows creators to use characters and scenes from Disney movies and shows in short-form videos. These clips will appear on TikTok and in the Disney+ Verts section dedicated to vertical video.