Disney Plus May Launch a Free, Ad-Supported Tier to Compete with YouTube

Image: Disney

Disney Plus may soon be accessible at no cost. Reports indicate that Disney is exploring the introduction of a free, ad-supported tier for its streaming platform—first introduced in 2019—in a strategic effort to better contend with major rivals like Tubi and YouTube.

According to Business Insider, Adam Smith, the company’s chief product and technology officer, addressed these possibilities during a streaming-focused town hall meeting held on July 9. While the company has yet to establish a concrete timeline or determine the exact scope of such an initiative, the move underscores a broader internal effort to expand accessibility for its audience.

Presently, a standalone Disney Plus subscription starts at $11.99 with commercials, rising to $18.99 for an ad-free experience. These options are also available through various bundles, including cross-service packages with Hulu and Max. Furthermore, Disney recently confirmed it would streamline its digital ecosystem by merging the Hulu app into the Disney Plus experience.

Image: Suzanne Tenner/Marvel

Implementing a free tier would place Disney in direct competition with dominant ad-supported platforms. The landscape is already shifting; Fox, the parent company of the free streaming giant Tubi, has doubled down on the model by acquiring Roku for $22 billion—adding The Roku Channel to its portfolio. Recent Nielsen data highlights the weight of these services, noting that YouTube, Tubi, and The Roku Channel collectively captured over 18% of total U.S. television viewing time in April alone.

As subscription costs for premium services continue to climb, maintaining growth while competing against cost-free alternatives has become increasingly difficult. While major players like Netflix and Apple TV Plus have largely avoided free tiers, opting instead for occasional promotional trials, a successful launch of a free, permanent tier could provide Disney with a significant market advantage.

Source: Polygon