Disney Plus is reportedly looking into a free streaming tier
Developed over time first seen 3 months ago
Disney is reportedly exploring the introduction of a free, ad-supported-style streaming tier for Disney Plus, according to a report from Business Insider. The idea was said to have been raised by Adam Smith, Disney's chief product and technology officer, during a company town hall on Thursday, and is described as part of ongoing discussions about ways to "better serve fans". If it goes ahead, the move would mark a notable shift for a service that has so far relied on paid subscriptions.
Key details remain scarce: it is not clear which shows or films would be included, or when such a tier might launch, and Disney did not immediately respond to The Verge's request for comment. The reported deliberations come as streamers increasingly compete with YouTube, which now commands a large share of viewers' time on television sets. Disney Plus has already rolled out features such as vertical video feeds and always-on channels — the latter being something Netflix is also rumoured to be considering.
- Disney reportedly weighing a free Disney Plus streaming tier.
- Idea raised by a senior executive at a company town hall.
- Move seen as a way to compete with YouTube.
New here? Start with this
Disney Plus has been built almost entirely around paid subscriptions since it launched in 2019, unlike rivals such as YouTube, which is free to watch and makes its money from advertising. Adam Smith is Disney's chief product and technology officer, meaning he oversees how the service works and develops; his comments came during an internal town hall meeting for staff, rather than a formal announcement. Business Insider first reported the remarks, and Disney has not confirmed or given further detail publicly.
The wider context is a streaming market where viewers increasingly watch YouTube on their television sets rather than traditional subscription services, putting pressure on companies like Disney to find new ways to attract and keep audiences. Streaming firms have been experimenting with different formats to compete, including cheaper ad-supported plans, short vertical videos, and "always-on" channels that play continuously like traditional TV.
A free tier would represent a significant change in strategy for Disney Plus, which has so far asked all users to pay something to watch its films and shows. It remains unclear what such a service might look like in practice, including which content would be available and when, or whether the idea will move beyond internal discussion.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A free ad-supported tier would make strategic commercial sense for Disney Plus by lowering the barrier to entry and capturing millions of users currently unwilling to pay, whilst generating revenue through advertising and gradually converting some to paid subscriptions. This approach reflects industry evolution—competitors like Netflix have adopted similar models—and would allow Disney to compete more effectively with free platforms like YouTube that consume substantial viewer attention. The expanded user base data and advertising revenue could ultimately prove more profitable than maintaining the paid-only model.
The case against
Introducing a free tier risks undermining Disney Plus's core business model and profitability, as existing paid subscribers might downgrade to the ad-supported option, directly cannibalising revenue rather than converting free users to paid customers. Ad-supported streaming generates substantially lower revenue per user than subscriptions, and fragmenting the service into multiple tiers increases operational complexity whilst potentially devaluing the offering for customers currently paying full price. Associating Disney's premium content with advertising could diminish brand perception and train viewers to expect free access rather than building a sustainable paid subscriber base.