Disney could introduce an ad-supported Disney+ free tier in the future, according to comments Disney CEO Josh D'Amaro made during the company's latest earnings call (via The Wrap).
D'Amaro said Disney is considering a free tier that could allow it to reach people unwilling to pay for a subscription, but no launch plans were shared.
First, we see it as a way to expand our reach to a customer segment that's more price-sensitive. Expanding our reach is, as we've talked about before, one of our strategic priorities. Second, unlike a lot of our AVOD competitors, we're fairly well sold, meaning more inventory would actually help us accelerate our ad revenue growth. And then finally, as you mentioned in your question, a free offering could help us drive top-of-funnel Disney+ subscriber growth. So nothing specific to announce today, but definitely something that we're considering.
Disney+ competitors like Apple TV and Netflix don't have a completely free tier, but services like Tubi and The Roku Channel offer free content, as does YouTube. Disney+ has approximately 130 million global subscribers and is one of the most-watched streaming services in the United States.
Disney also signed a deal with TikTok, which will see TikTok creators use characters and scenes from Disney movies and shows for short-form videos. The videos will be available on TikTok and on the Disney+ Verts section for vertical video.
