Disney Is Considering a Free Disney+ Tier as YouTube Changes How People Watch TV
Disney may be preparing a major change to its streaming strategy by exploring a free version of Disney+ that would allow users to watch some content without paying for a subscription.
According to two people familiar with the company’s plans, Disney is discussing ways to make parts of its streaming library available without a paywall. The idea is still being explored, and there is currently no confirmed timeline for when such a service could launch or how much content would be included.
The discussions reportedly came up during a Disney streaming town hall, where product and technology chief Adam Smith spoke about the possibility of offering free-tier content. One staff member who attended the meeting said Smith discussed the concept but did not provide details about the scale or timing of the project.
A source familiar with Disney’s streaming strategy said the company is continuing to look at different ideas that could improve the way fans interact with its platforms.
The potential move comes as free streaming services continue to gain popularity, especially as audiences look for alternatives to rising subscription prices. Platforms like YouTube, Tubi, and The Roku Channel have seen increased viewing numbers as more consumers turn toward ad-supported entertainment.
According to Nielsen data, free streaming platforms have been taking a larger share of television viewing in the United States. The three biggest free streaming services accounted for 18.7% of TV watch time in April, growing from 16.8% the year before and 12.7% in April 2024.
For Disney, adding a free tier could help Disney+ reach more viewers while creating new opportunities for advertising revenue. The company currently offers Disney+ and Hulu bundles that cost $12.99 per month with ads or $19.99 without ads at full price, but a free option would represent a major shift in how the platform operates.
Unlike traditional streaming services, YouTube has built a massive audience by offering free access supported by advertising. That success appears to be influencing how major entertainment companies think about the future of streaming.
Disney is also experimenting with different types of content formats as it tries to keep viewers engaged. The company has recently introduced short-form videos on Disney+, following a similar approach taken by other streaming platforms. Short videos, podcasts, and vertical content are becoming a bigger part of the industry as companies look for new ways to compete for audience attention.
Would you use a free Disney+ tier with ads?
Disney CEO Josh D’Amaro has reportedly emphasized the importance of improving streaming through “product and technology innovation,” as the company looks for ways to evolve its digital platforms.
Other major streaming companies are also changing their strategies. Netflix recently announced plans to add shorter videos from publishers including BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media, and People Inc. The platform has also expanded into video podcasts and experimented with different formats.
While Disney has not officially announced a free Disney+ tier, the discussions show how quickly the streaming landscape is changing. As audiences become more comfortable with free, ad-supported entertainment, even some of Hollywood’s biggest companies are reconsidering how they deliver content to viewers.
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