Disney and Netflix are both weighing free, ad-supported streaming offerings after years of raising subscription prices, amid growing customer frustration and churn. Disney CEO Josh D'Amaro told investors the company is "exploring a free product" that would help reach price-sensitive customers, boost advertising revenue and drive awareness for paid Disney+ subscriptions, though no concrete plans have been announced. Netflix co-CEO Greg Peters was more cautious, saying a free tier "could make sense in some markets" but warning of the risk of cannibalising paid subscriptions, adding there are "no near-term plans to launch something."

Disney+ has around 131.6 million subscribers and has raised US prices twice since 2024, most recently in October with increases of $2 a month for ad-supported plans and $3 for ad-free ones. Netflix, with over 325 million subscribers, has also hiked prices twice in that period, last raising them by $1 (ad plans) or $2 (ad-free) in March. The moves come as free ad-supported streaming television (FAST) services such as The Roku Channel and Pluto TV gain popularity, with 46 per cent of US internet households regularly using them, according to a Parks Associates survey.