Free tiers are Hollywood’s next big idea in the streaming wars
Major streaming platforms like Disney and Paramount are considering the introduction of free, ad-supported tiers to compete with services like YouTube and Tubi. While this strategy could help capture price-sensitive viewers, analysts warn it may cannibalize existing subscription revenue.
Why it matters
The streaming industry is reaching a saturation point, forcing companies to rethink monetization models to combat 'stream-flation' and declining subscriber growth.
Disney and Paramount Skydance have brainstormed introducing free tiers for their paid streaming services. Netflix co-CEO Greg Peters has said his company will "continue to consider" a free tier. Anadolu Agency/Getty Images; Bloomberg/Getty Images; Michael Yanow/NurPhoto via Getty Images Free tiers could help paid streamers fight the rise of services like YouTube and Tubi. Disney and Paramount are exploring free tiers, Business Insider has reported. However, Netflix's co-CEO suggested that making some content free can be risky. To free, or not to free? That is the question for paid streamers like Netflix, as free services, and YouTube in particular, attract TV viewers. Hollywood giants Disney and Paramount Skydance are exploring adding free tiers to their subscription services to build audiences, grow advertising revenue, and turn curious newcomers into customers, Business Insider previously reported.
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