After jacking up prices, Disney+ and Netflix consider offering free alternatives
Disney is exploring the launch of a free, ad-supported streaming service to attract price-sensitive customers and boost subscriber growth. The initiative aims to leverage Disney's existing ad inventory and funnel users toward its premium Disney+ subscription.
Why it matters
This shift reflects a broader industry trend where streaming giants are pivoting toward ad-supported models to combat subscriber churn and market saturation.
streaming pivot After jacking up prices, Disney+ and Netflix consider offering free alternatives Disney is interested in “price-sensitive” streaming customers.
24 Credit: Getty Credit: Getty Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav Disney is “exploring a free product” for streaming customers, CEO Josh D’Amaro confirmed in a call with investors today.
D’Amaro, who succeeded Bob Iger as Disney’s chief in March, said that a free Disney-owned streaming service would help Disney reach more “price-sensitive” customers, which is a “strategic priority” for Disney, according to a transcript of the call.
A free streaming service would also generate more ad revenue, which has become increasingly important for streaming services challenged by plateauing subscriber numbers, subscriber churn, and competition from cheaper and free rivals .
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