Disney mulls free ad-supported tier to boost disney+ viewers

Disney is reportedly in talks to introduce a free, ad-supported tier for its popular Disney+ streaming service.

Move aims to increase subscriber numbers amid growing competition

The idea of a free tier first surfaced during a meeting between Disney's Chief Product and Technology Officer Adam Smith and employees, according to Business Insider. Smith discussed the possibility of offering a free ad-supported option to attract more viewers.

If Disney does launch a free tier, it's likely to be similar to other ad-supported services like Pluto TV and Tubi. However, not all content available to paying subscribers would be accessible on the free tier.

Popular titles like Star Wars and Marvel franchises might be off-limits to free users. This strategy could help Disney retain existing subscribers while adding new customers.

Disney+ currently has 131.6 million subscribers globally, including 7 million added in the last fiscal year. In the US and Canada, Disney+ is believed to have 54-56 million subscribers.

A free ad-supported tier could help Disney compete with other streaming services and potentially drive subscriber growth. The company can still generate significant revenue from ads, similar to music streaming service Spotify, which has over 483 million free users.