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[BUSINESS] · United States · 14 sources

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Walt Disney Company Explores Free Ad‑Supported Disney+ Tier

Disney CEO Josh D’Amaro confirmed that the company is evaluating a free, ad‑supported tier for Disney+. The proposed tier is intended to attract price‑sensitive viewers, increase advertising inventory, and serve as a funnel to convert free users into paid Disney+ subscribers.

During the third‑quarter earnings call Disney reported a 11% rise in streaming revenue to $5.53 billion and operating income more than doubled to $712 million. Overall quarterly revenue reached $25.2 billion with net income of $2.63 billion. Consumer‑products sales hit $1.1 billion, the strongest year‑over‑year growth in five years. The financial strength is cited as the backdrop for the potential free‑tier experiment.

Analysts note that the move would place Disney alongside other free‑ad‑supported services such as Tubi and Roku, while leveraging Disney’s extensive content library and brands like Marvel, Star Wars, and Pixar.

Entities

Disney Consumer Products · Disney Entertainment Studios · Disney+ · ESPN · Hulu · Josh D'Amaro · Josh D’Amaro · Lisa Baldzicki · The Walt Disney Company · Walt Disney Company

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