Disney says it’s ‘exploring’ adding a free tier to Disney Plus

Disney is looking into launching a free streaming option. When asked about Disney’s plans for free, ad-supported streaming during an earnings call on Wednesday, Disney CEO Josh D’Amaro confirmed the company is “exploring a free product for consumers.”

D’Amaro added that a free tier will help drive growth and expand the streaming service’s reach “to a customer segment that’s more price sensitive.” Though D’Amaro said that there’s “nothing specific to announce today,” he noted that a free tier is “definitely something that we’re considering.”

In July, Business Insider reported that Disney’s chief product and technology officer, Adam Smith, brought up the possibility of a free streaming tier during a company town hall. Streaming services like Disney Plus, Netflix, and HBO Max are facing increasing competition from YouTube, which has taken steps to make its platform look more like TV with “Stations” that play content 24/7 and a way for creators to organize videos into “seasons.”

Next year, Disney plans to expand the Disney Plus ecosystem as part of efforts to make it the “digital centerpiece” of the company. That includes “bringing together games, merchandise, and other experiences, while offering increased personalization, exclusivity, and benefits for subscribers,” according to D’Amaro. The company also announced that it’s partnering with TikTok to bring “Disney-centric fan-created content” to the short-form video feed in Disney Plus.