Disney Enters Free Ad-Supported Streaming Market

Walt Disney is finally entering the free ad-supported streaming TV (FAST) market, which has been dominated by competitors like Fox's Tubi and Paramount's Pluto TV for years. The company plans to launch multiple FAST channels, allowing it to bundle new inventory with that of its existing streaming services, including Disney+, Hulu, and ESPN.

This move is seen as a way for Disney to combat 'churn,' or subscribers who opt out of their monthly streaming deals. Research suggests that TV consumers are more likely to resist abandoning streaming services if they remain in the Disney ecosystem by watching free, ad-supported Disney-branded FAST channels.

FAST channels would also help Disney monetize decades of TV and movie content, including its National Geographic and 20th Century Fox library. Additionally, these channels can be used as a promotional device for ABC, ESPN, Disney+, and other platforms.