Disney May Launch a Free Streaming Option Soon

Disney is weighing a free, advertising-supported streaming tier, a move that could eventually let viewers watch some of the company’s content without paying a subscription fee. The idea was confirmed by CEO Josh D’Amaro during this week’s earnings call, though he stopped short of announcing a firm launch plan.

Why Disney Is Considering the Shift

D’Amaro laid out several reasons behind the potential move. A free tier would help Disney reach budget-conscious consumers who are wary of rising subscription costs, supporting the company’s broader goal of expanding its audience. It could also increase advertising revenue by pulling in more viewers, and might ultimately funnel some of those users toward paid Disney+ subscriptions. D’Amaro emphasized that a large global user base matters for long-term growth, particularly as new technologies like AI create fresh ways to engage viewers through streaming platforms. He noted that Disney is treating the platform as a central hub for its relationship with fans, not just a subscription product.

Free Streaming Is Already Gaining Ground

Ad-supported free platforms have been picking up momentum industrywide. Fox-owned Tubi, for instance, turned a profit for the first time last year, drawing around 100 million monthly active users and streaming roughly a billion hours of content each month. In January, Tubi captured a notable share of total U.S. streaming minutes, trailing Disney+ but outperforming rivals like Peacock and HBO Max, according to Nielsen data. Industry watchers point to shrinking subscription budgets as a key driver pushing viewers toward free alternatives.

Disney’s streaming division is currently performing well: entertainment streaming revenue, covering Disney+ and Hulu, rose 11% last quarter, fueled by subscriber growth, price increases, and stronger ad sales — even as the company topped earnings expectations while narrowly missing revenue targets.