Disney is considering a free, ad-supported streaming offering to reach price-sensitive customers and boost advertising revenue.
Key facts
- •CEO Josh D’Amaro confirmed Disney is exploring a free, ad-supported streaming product.
- •The initiative aims to reach price-sensitive customers and increase advertising revenue.
- •Disney currently has high demand for its ad inventory, which D’Amaro said could be supported by more content.
- •A free tier is intended to serve as a top-of-funnel tool to drive growth for Disney+ subscriptions.
- •No specific timeline or product details have been announced by the company.
Disney is exploring the development of a free streaming product to reach price-sensitive consumers, according to CEO Josh D’Amaro. During a call with investors, D’Amaro stated that while there is nothing specific to announce, the company is considering a free offering to help accelerate ad revenue growth and drive interest in Disney+ subscriptions.
Strategic Goals for Free Content
D’Amaro noted that a free, ad-supported service would allow Disney to capitalize on its existing advertising inventory. The company faces challenges including plateauing subscriber numbers, subscriber churn, and competition from other free or low-cost streaming platforms. By offering a free tier, Disney aims to expand its reach and build awareness at the top of its customer acquisition funnel. Executives have not provided specific details regarding the scope or a potential timeline for such an initiative.
Previous Reports on Free Access
A report from Business Insider last month indicated that Disney has discussed making some content accessible on Disney+ without a paywall. According to that report, Adam Smith, Disney's chief product and technology officer, mentioned the possibility of free streaming content during an internal meeting for streaming employees.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Ars Technica.
