Walt Disney Company (NYSE:DIS) is considering a free, advertising-funded tier for Disney+ as part of efforts to expand its audience and better compete with free, ad-supported streaming services. The company has held internal discussions, but the idea remains exploratory and no determinations have been reached on how large a launch would be, when it might occur or which markets would be included.
Shares of Disney were little changed in premarket trading.
Executives have discussed the proposal amid a broader shift in viewer behavior toward free, ad-supported platforms such as YouTube, Tubi and The Roku Channel. Data from Nielsen cited in reporting indicate that free streaming platforms accounted for 18.7% of U.S. television viewing in April 2026, up from 12.7% two years earlier, reflecting growing price sensitivity among consumers as subscription costs rise.
Disney already offers ad-supported subscription plans for Disney+ in several markets. However, introducing a fully free tier would mark a material change to its streaming strategy. Competitors that rely entirely on free, advertising-supported models, including Tubi and Pluto TV, have accumulated substantial audiences, and YouTube has steadily grown its share of television viewing.
Alongside consideration of a free tier, Disney is evaluating a range of product initiatives intended to boost engagement on its streaming platforms. Those initiatives include short-form vertical video, serialized micro-dramas and podcasts, measures the company is reviewing as Chief Executive Josh D'Amaro presses to strengthen its streaming offering. The discussions remain at an early stage and no final decisions have been reached.
Context and implications
The conversations at Disney reflect how media companies are searching for new ways to attract viewers while increasing advertising revenue, as portions of television viewing shift toward free streaming options.
Company sources say the concept is exploratory and that scope, timing and target markets have not been set.