Disney Eyes Free Ad-Supported Streaming Tier Amid Q3 Earnings Boost

Disney's Q3 earnings saw a significant boost in revenue and profits, thanks to the success of its streaming services. Disney+ and Hulu revenues climbed 11% year-on-year to $5.5 billion, with profits growing by over 100% to $712 million. The subscription fees for these services increased by 15% to $4.7 billion.

Disney CEO Josh D'Amaro floated the idea of introducing a free ad-supported Disney+ tier in Q3 earnings. This move is aimed at broadening the company's reach to price-sensitive customers, increasing advertising revenue, and eventually growing subscribers. D'Amaro stated that 'nothing specific to announce today, but definitely something that we're considering.'

The experiences division saw a 10% rise to just shy of $10 billion for the period ended June 27. D'Amaro is moving the consumer products division from the Experience segment into Entertainment, which houses the studios unit. The Entertainment segment saw revenues climb 6% to $11.3 billion in Q3, with the success of Toy Story 5 being a key driver.