A Disney Plus free tier is being considered, not launched. Disney CEO Josh D’Amaro said on the company’s earnings call that it is “exploring a free product for consumers,” according to The Verge. He offered no rollout date or product specification.
That distinction is doing a lot of work. Disney has not said which films or shows could be available without a subscription, whether viewers would see ads, where any offer would be available, or how it would fit beside existing Disney Plus plans. D’Amaro said there was nothing specific to announce, while describing the concept as something the company is considering.
The confirmed business case is reach. D’Amaro said a free option could help Disney grow and get in front of consumers who are more sensitive to subscription prices. It would put the company in more direct competition for attention with free video services, rather than merely with the usual paid-streaming suspects.
When will Disney Plus launch a free tier?
Disney has announced no launch timing. The company also has not confirmed an advertising model, a content lineup, geographic availability or a price because, despite the name, “free” products still need rules somewhere in the machinery.
Earlier reporting by Business Insider, published in July, said Disney was discussing allowing viewers to watch some Disney Plus content outside the paywall. The report cited two people familiar with the matter. One staffer told the publication that Adam Smith, Disney’s chief product and technology officer, raised free-tier content at a streaming town hall, but did not give employees a timetable or explain the proposed scope.
Why is Disney considering a free option?
Free video is taking a larger portion of television viewing. Business Insider, citing Nielsen, reported that YouTube, Tubi and The Roku Channel together accounted for 19.1% of U.S. TV viewing in May, up from 17.2% a year earlier. Disney’s exploration follows that audience shift, though the company has not tied its potential product to a particular competitor or specified how it would work.
A free tier could widen an app’s audience and create an advertising business, but it could also tempt existing subscribers to move to a cheaper option. Greenlight Analytics analyst Brandon Katz told Business Insider that services need to choose free content carefully to avoid eroding subscription revenue. Media analyst Paolo Pescatore told the publication that giving away too little may fail to attract viewers, while giving away too much could weaken the paid model.
For viewers, the current answer is less glamorous than the speculation: Disney is evaluating the idea. No free Disney Plus catalog, release schedule or viewing terms have been announced.
This story draws on original reporting from The Verge.
