Disney Explores Free Streaming Service Amid Rising Competition
Disney is exploring the launch of a free, ad-supported streaming service for consumers. In an earnings call on Wednesday, CEO Josh D'Amaro stated that this move would help expand the company's reach to price-sensitive customers and drive growth in subscribers. Unlike competitors like Fox Corp.'s Tubi and Paramount Skydance's Pluto TV, Disney has more ad inventory, which could accelerate its ad revenue growth.
Disney has also reported selling out ad spots for the upcoming Super Bowl on ABC and ESPN networks, with 30-second spots reportedly sold for $9 million. The company's Chief Financial Officer Hugh Johnston described the market as healthy in sports but competitive in streaming due to increased supply. He noted that lower ad rates have weighed on revenue for Disney's overall entertainment unit.