Disney+ mulls free ad-supported tier to expand reach

Disney+, the streaming service from the House of Mouse, is reportedly considering a free ad-supported tier to attract more viewers. The idea was first floated during a meeting between Disney's Chief Product and Technology Officer Adam Smith and employees, as a way to boost subscriber numbers.

Disney's free tier would likely be ad-heavy like pluto tv, tubi

While nothing official has been announced, a free Disney+ tier would likely mirror other ad-supported streaming services like Pluto TV and Tubi, both of which rely on ads for revenue. This means viewers would enjoy a selection of movies and shows, but would have to endure commercials to access the content for free.

However, the popular Star Wars and Marvel franchises are likely to be excluded from the free tier, a valuable selling point for Disney to maintain its paid subscriber base. After all, the Mouse House still generates significant revenue from its premium offerings.

Disney's consideration of a free tier comes as streaming services face growing competition and rising subscriber costs. Many consumers are cutting the cord and letting go of their monthly streaming subscriptions due to price hikes. By offering a free, ad-supported option, Disney aims to attract price-sensitive viewers and expand its reach.

Interestingly, 30% of Disney+ subscribers currently opt for the ad-supported Basic tier, demonstrating the appeal of a lower-cost entry point. If Disney does introduce a free tier, it could potentially add millions of new users to its platform.