Disney Considers Free Ad-Supported Tier for Disney+

Disney CEO Josh D'Amaro has hinted at introducing a free ad-supported tier for Disney+, as part of efforts to expand its reach and increase advertising revenue. This move aims to attract price-sensitive customers, potentially growing subscriber numbers in the long run.

The idea was floated during Disney's Q3 earnings announcement, where the company reported solid results across various divisions. The streaming segment saw a significant 11% year-on-year growth in revenues, reaching $5.5 billion, with profits increasing by over 100% to $712 million.

Disney+'s success has been driven by popular titles such as Toy Story 5 and the release of Spider-Man: Brand New Day, which earned over $1 billion globally. The company's Entertainment segment saw a 6% revenue increase to $11.3 billion in Q3, with June's Toy Story 5 being a major contributor.

D'Amaro also highlighted the value of cycling IP throughout the company, citing examples such as The Mandalorian and Grogu driving interest in Disney World's Millennium Falcon: Smugglers Run ride, and Moana expected to perform well on Disney+ due to its popularity among animation fans.