Disney is exploring making some of its streaming content available at an unbeatable price: free.
The Mouse House is discussing making some content accessible on Disney+ without a paywall, according to two people familiar with the matter.
Product and tech chief Adam Smith spoke about enabling free-tier content during a streaming town hall on Thursday afternoon, one staffer said. Smith didn’t share a timeline for this initiative or a sense of the scope, this person added.
A person familiar with Disney’s streaming strategy said these talks are part of an ongoing discussion about concepts to better serve fans.
Currently, the Disney+ and Hulu bundle costs $12.99 a month with ads or $19.99 without ads at full price.
Free streaming services like YouTube have become wildly popular with audiences, generating significant growth in viewership share on US-based TVs compared to their paid peers, according to Nielsen data. The three largest free streamers accounted for 18.7% of watch time on US TVs in April, up from 16.8% a year earlier and 12.7% in April 2024.
As paid streamers have raised prices, consumers have increasingly sought out free content on YouTube and on ad-supported services like Tubi and The Roku Channel. (Tubi parent Fox is planning to double down on free streaming by buying Roku for $22 billion.)
A free tier could help Disney+ stand out among paid streamers. Apple TV and Paramount+ let users sample some full episodes, but paid streaming services generally don’t have robust free offerings.
Disney and its Hollywood peers are also looking to boost engagement by embracing new formats like short-form video, podcasts, and micro dramas, which are bite-sized vertical shows.
In recent months, Disney has added vertical clips to its flagship streaming app, as has Paramount+. CEO Josh D’Amaro has told staffers he’s prioritizing “product and technology innovation” in streaming.
Netflix announced this week that it’s adding 3- to 20-minute videos next month from publishers like BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media, and People Inc. The streaming giant made a major move into video podcasts earlier this year and has also dabbled in vertical video.
