Disney+ is considering add a free plan option, making at least some of its content more accessible to a wider audience.
According to a report from Business Insider, Disney’s product and tech chief Adam Smith discussed the possibility of offering free-tier content during a town hall on Thursday. The person who shared that information with Business Insider said they were not given details about when that free tier might be added or what exactly would be included.
With recent price hikes across many paid streaming services, cord cutters are increasingly turning to free services like YouTube, Pluto TV, and Tubi for their entertainment. With Disney+ already finding success in a less expensive ad-supported tier, it makes sense to use free content to bring in even more subscribers.
It’s possible that Disney+ will follow in the footsteps of Paramount+ and Apple TV and offer just a small selection of titles for free, in an effort to draw viewers in and encourage them to subscribe for access to full seasons of TV shows. Paramount+ frequently makes the first episode of new series, like Dexter: New Blood and Ray Donovan, available for free to drum up interest. Apple TV does the same, with an entire collection labeled Free Series Premieres.
While Disney+ would lose out on subscription dollars, it wouldn’t be a revenue loss for the company. A free tier would mean additional ad revenue, giving Disney a share of the billions in ad sales that are being raked in by services like Tubi and The Roku Channel.
Free content is currently being described by sources as “exploratory” at the company, as execs are likely looking at all the options for a free tier and the financial benefits of increasing ad sales. With quarterly earnings calls coming up, we’ll likely learn more about the plans soon.