Streaming giant Disney is reportedly weighing the possibility of a free tier in Disney Plus. If true, this would mark a significant shift in one of the world’s biggest entertainment providers. The move could allow the streaming service to reach wider audiences worldwide. The CEO described it as a potential way to reach price-sensitive markets while also expanding the company’s ad business.
Disney CEO says a free tier may be coming for Disney Plus
During the company’s third-quarter earnings call, Disney’s CEO, Josh D’Amaro, said they’re considering the idea of adding a free tier to Disney Plus. He further said that the free tier could help Disney achieve many of its goals at once. As per the executive, the biggest opportunity is reaching consumers who are less willing to pay for another streaming subscription.
Further, he said that Disney’s ad-supported inventory is already in strong demand and the move could further expand the ad business. Moreover, the CEO said the free plan would bring in more viewers and would create additional inventory. This will allow the company to further grow its ad revenue. Last but not least, the free tier could also serve as an entry point for new users before they eventually upgrade to a paid Disney Plus subscription.
Nothing remains confirmed for now, but the direction seems positive
Despite all the advantages, the CEO said that the company is still exploring all the impacts of the move and that nothing has been finalized yet. He said that if the company ever decides to introduce any such tier in the future, it would be first announced publicly.
The idea is not entirely new in the streaming industry. For reference, Peacock offered a free ad-supported tier until 2023, while Hulu dropped its free plan in 2016 as the subscription business evolved. Free ad-supported services such as Tubi, Roku TV and Samsung TV Plus remain available. However, they operate differently from subscription-focused platforms by relying almost entirely on advertising. If a free Disney Plus tier ever becomes a reality, it would be interesting to see the implementation.
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