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Disney exploring adding a free tier to Disney+ as YouTube attracts viewers

Disney exploring adding a free tier to Disney+ as YouTube attracts viewers

Disney is exploring making some of its streaming content available at an unbeatable price: free. The Mouse House is considering making some content accessible on Disney+ without a paywall, according to two people familiar with the matter. Chief product and technology officer Adam Smith discussed enabling free-tier content during a streaming town hall Thursday afternoon,

Disney is exploring making some of its streaming content available at an unbeatable price: free.

The Mouse House is considering making some content accessible on Disney+ without a paywall, according to two people familiar with the matter.

Chief product and technology officer Adam Smith discussed enabling free-tier content during a streaming town hall Thursday afternoon, a staff member said. Smith did not share a timeline for this initiative or an idea of ​​the scope, this person added.

A person familiar with Disney’s streaming strategy said these conversations are part of an ongoing discussion about concepts to better serve fans.

Currently, the Disney+ and Hulu bundle costs $12.99 per month with ads or $19.99 without ads at full price.

Free streaming services like YouTube have become popular with audiences, driving significant growth in audience share on U.S. televisions compared to their paid peers, according to Nielsen data. The three largest free streamers accounted for 18.7% of viewing time on US TVs in April, up from 16.8% a year earlier and 12.7% in April 2024.

As paid streamers have raised prices, consumers have increasingly sought free content on YouTube and ad-supported services like Tubi and The Roku Channel. (Fox, Tubi’s parent company, plans to double down on free streaming by buying Roku for $22 billion.)

A free tier could help Disney+ stand out among paid streamers. Apple TV and Paramount+ allow users to try out a few full episodes, but paid streaming services generally don’t have strong free offerings.

Disney and its Hollywood peers are also looking to boost engagement by adopting new formats such as short videos, podcasts and microdramas, which are bite-sized vertical shows.

In recent months, Disney has added vertical clips to its flagship streaming app, as has Paramount+. Disney CEO Josh D’Amaro has told his staff that he is prioritizing “product and technology innovation” in streaming.

Netflix announced this week that it will add 3- to 20-minute videos next month from publishers including BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media and People Inc. The streaming giant made a major move into video podcasts earlier this year and has also forayed into vertical video.