Disney+ Could Add a Free Tier

Disney+ is exploring the introduction of a new free tier to attract more users to the streaming service. Adam Smith, Disney’s Chief Product & Technology Officer, floated this new free tier idea during a streaming town hall yesterday, as reported by Business Insider, which also heard about the project from other sources.

“Smith didn’t share a timeline for this initiative or a sense of the scope,” Business Insider wrote. “A person familiar with Disney’s streaming strategy said these talks are part of an ongoing discussion about concepts to better serve fans.”

As of today, the cheapest Disney+ plan is the ad-supported one at $11.99, which is $3 more expensive than Netflix Standard with ads ($8.99) or a standalone Amazon Prime Video subscription with ads. However, Disney increasingly sees YouTube, which according to Nielsen (https://www.nielsen.com/data-center/the-gauge/) has been #1 in streaming watchtime in the U.S. for nearly three years, as its main competitor.

Disney is one of the most renowned entertainment brands in the world, and it has a lot of high-quality content. The addition of a free tier may help Disney+ to reach a new audience that may not be ready to pay for another streaming service. However, as noted by Business Insider, other platforms such as Apple TV and Paramount+ have found another way to attract new viewers by letting them watch select episodes of their TV shows for free.