Disney+ Officially “Considering” Free Subscription Plan Amid Hulu Merger
Disney's new chief executive, Josh D'Amaro, has said the company is considering introducing a free, ad-supported tier for Disney+, having disclosed the plan during an earnings call. It would mark a significant shift for the streaming service, which has never offered a free option, unlike rivals such as Peacock and its sibling platform Hulu, and comes as Disney continues merging Disney+ with Hulu.
D'Amaro, who took over as chief executive from Bob Iger earlier this year, made the comments at the company's most recent earnings call, though no further details on pricing, launch timing or content restrictions for a free tier were given. Disney+ launched during the pandemic under former CEO Bob Chapek and has built a large library spanning Marvel, Star Wars, Pixar, National Geographic and other franchises including Indiana Jones, Avatar and The Simpsons, alongside a growing slate of original productions.
- Disney+ CEO Josh D'Amaro confirms a free tier is under consideration.
- Move follows Disney+'s ongoing merger with Hulu.
- Disney+ has never previously offered a free subscription option.
New here? Start with this
Disney+ is Disney’s subscription streaming service, with films and programmes from brands such as Marvel, Star Wars, Pixar and National Geographic. Until now, viewers have needed a paid subscription to watch it, while some competing services offer free viewing supported by adverts.
Disney is also bringing Disney+ and Hulu closer together, combining parts of the two services. Hulu has offered an ad-supported option, so the change could affect how Disney presents its services and reaches viewers.
Josh D’Amaro became Disney’s chief executive after Bob Iger. A free tier could give people another way to access some Disney+ content, while advertising would provide a source of income; the details of any such option have not been set out.
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 is a competitive necessity reflecting how the streaming market has evolved. Rivals like Peacock and Hulu have already demonstrated that free offerings with advertising can expand audience reach whilst generating revenue, and such tiers often serve as conversion funnels to paid subscriptions. Disney risks ceding market share if it refuses to adopt the industry-standard freemium model, particularly as the Hulu merger creates an opportunity to rationalise its streaming portfolio.
The case against
Introducing a free tier risks cannibalising revenue from existing paid subscribers and diluting the premium positioning that Disney+ has cultivated. The service's extensive library of marquee franchises commands sustainable pricing without fragmenting the userbase, and a free option could pressure margins and complicate the merged Hulu offering. Shareholders focused on profitability may object to a strategy that spreads users across multiple tiers rather than maximising revenue per user.