"Free" isn't a word you normally associate with Disney, but it soon might be used with Disney+
The Disney big wigs are considering offering a free ad-supported tier of Disney+.
Disney considers free tier for its video streamer, | Image by PhoneArena
It was November 2019 when the Disney+ video streamer app and website launched. From the get-go, it was another big media hit for the House of Mouse. Now, the powers that be at Disney have reportedly been in discussions about offering a free tier of service that would deliver to viewers a selection of movies and shows without having them pay a monthly subscription fee.
Disney is reportedly discussing a free ad-supported tier of service for Disney+
Business Insider reported last week that the idea of a free tier of service first came up during a meeting. During this conference, Disney Chief Product and Technology Officer Adam Smith spoke with employees and the idea came up to offer a free tier of Disney+ as a way for the platform to add more viewers.
What is your favorite Disney+ video category?
Nothing official has been announced as it seems that Disney is still kicking around the idea. The free version of Disney+ would probably be similar to other video streamers that offer free content. Pluto TV and Tubi are two that come to mind, and both are subsidized by ads.
A free tier of Disney+ content could eliminate popular content
If Disney does offer a free ad-supported tier of service, not all of the content available to paying subscribers will be available to view on the free tier. For example, it is likely that popular content on Disney+ such as the Star Wars and Marvel franchises probably would be off limits on a free tier.
This would be a good time for Disney+ to consider and then implement a free tier of ad-supported content. Many consumers are starting to let go of their monthly streaming subscription plans due to the constantly increasing prices.
The Android app version of the Disney Plus streamer. | Image by PhoneArena
Current pricing in the US for bundle packages start at $12.99 per month for Disney+ and Hulu (limited content) with ads. The same service without ads and support for downloads starts at $18.99 per month.
Pricing runs as high as $44.99 per month for the Disney+, Hulu, and ESPN Unlimited Premium bundle for $44.99 per month. This package includes Disney+ (No Ads), Hulu (No Ads), and ESPN (With Ads).
T-Mobile subscribers got hit with monthly invoice hikes from $1-$8 higher to as much as $21 higher without warning. That's because a loophole that T-Mobile customers on premium plans such as Go5G Next and Experience Beyond could exploit has been closed. This loophole allowed T-Mobile customers getting free Hulu to stack it with a Disney+ bundle or subscription reducing the cost of a Disney+ subscription to as low as $1 to $2 per month.
T-Mobile subscribers who want Disney+ now have to pay for the standalone service themselves.
Disney+ added 7 million core subscribers during fiscal 2025
Globally, Disney+ has 131.6 million subscribers, adding 7 million core subscribers over the last fiscal year. This broke a post-pandemic slump suffered by Disney+. Meanwhile, US and Canadian Disney+ subscribers are believed to number 54 to 56 million. Interestingly, 30% of all Disney+ core subscribers are signed up for the ad-supported Basic tier, showing how important having a lower-cost entry-point is for customer retention.
The same thought seems to be behind the discussions about adding a free ad-supported tier for Disney+ viewers. The thought is that this tier would add new customers to the video streamer.
Disney can still generate huge profits offering a free ad-supported tier; here's how
This seems to be something that music streamer Spotify had realized years ago. Globally the audio streamer has a whopping 761 million subscribers. Of that total, 483 million are signed up for the free ad-supported service, while 293 million pay for their monthly Spotify subscription.
If you're wondering how Spotify can afford to host 483 million free users, they simply charge advertisers rates commensurate with a platform that allows advertisers to reach such a large number of potential customers. Believe me, Disney is not the type of company that allows breadcrumbs (think of them as pennies) to drop off the table and hit the floor without coming up with a way to collect all of the crumbs.
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