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Disney Says It Is Exploring a Free Ad‑Supported Streaming Tier

A free offering could expand reach to price‑sensitive viewers, create ad inventory to boost revenue, funnel users toward paid Disney+ and Hulu subscriptions.

Overview

  • Disney CEO Josh D’Amaro confirmed Wednesday that the company is exploring a free, ad‑supported streaming product but offered no launch date or product details.
  • D’Amaro said the idea targets three goals: reach more price‑sensitive viewers, add ad inventory to accelerate advertising revenue, and act as top‑of‑funnel marketing for Disney+ and Hulu.
  • The effort remains exploratory and follows internal discussions in July where product chief Adam Smith raised the possibility of making some Disney+ content available without a paywall.
  • Disney says its current streaming ad inventory is largely sold and that a free tier could create incremental ad slots even as the broader streaming ad market faces downward pricing pressure from rising supply.
  • The company is also planning Disney+ ecosystem upgrades and increased content spending while weighing trade‑offs such as potential subscriber cannibalization and the operational details of a FAST rollout.