Disney and Netflix consider free ad-supported streaming tiers

Major streaming platforms, including Disney, Netflix, and Paramount, are exploring the introduction of free, ad-supported subscription tiers. This strategic shift aims to combat subscription fatigue and compete more effectively with platforms like YouTube.

Disney CEO Josh D’Amaro has confirmed the company is considering a free version of Disney+ to reach price-sensitive users and increase advertising revenue. The goal is to attract new audiences who may eventually convert into paid subscribers for full catalog access.

Netflix is also evaluating similar models, though with more caution. Co-CEO Greg Peters noted that while free options might make sense in specific international markets, the company must ensure such services do not cannibalize its existing paid subscriber base. Netflix is also focusing on expanding its advertising infrastructure and exploring live broadcasting to drive engagement and ad revenue.