Disney CEO Josh D’Amaro confirmed the company is exploring a new free, ad-supported streaming service to expand its global reach and increase advertising revenue among price-sensitive consumers.

Key Points

• Disney is evaluating a free, ad-supported streaming model to attract viewers who are sensitive to subscription price increases.
• The initiative aims to grow advertising revenue and potentially convert free users into paid Disney+ subscribers over time.
• Competitor Tubi, owned by Fox, currently reports 100 million monthly active users and has recently achieved profitability.
• Disney’s entertainment streaming division, including Disney+ and Hulu, reported an 11% revenue increase to $5.53 billion this quarter.
• The company views a large user base as essential for long-term growth and data-driven personalization across its digital platforms.

Why it Matters

Expanding into free, ad-supported content allows Disney to capture market share from cord-cutters and younger audiences who prefer ad-supported models over traditional subscriptions. This strategy could stabilize long-term growth by diversifying revenue streams and strengthening the company's position against competitors like Tubi.