Disney is exploring the launch of a free, ad-supported streaming service, CEO Josh D'Amaro confirmed during the company’s earnings call on Wednesday. While no formal announcement was made, D'Amaro outlined the potential benefits of such a move, including expanding reach to price-sensitive consumers and accelerating advertising revenue growth.
The company also announced it has sold out all ad spots for the upcoming Super Bowl, which will air on ABC and ESPN in February. Thirty-second ad slots for the event have reportedly been sold for $9 million each, reflecting the high demand for live sports advertising.
Potential Benefits of Free, Ad-Supported Streaming
D'Amaro stated that a free offering could help Disney drive top-of-funnel subscriber growth for its paid service, Disney+. He emphasized that Disney has more ad inventory compared to competitors, which could boost ad revenue. The company’s streaming ad inventory is described as “fairly well sold,” unlike some rivals.
The move aligns with broader industry trends, as cheaper, ad-supported plans have become increasingly important for major streaming platforms like Netflix and Disney+ to attract customers amid rising subscription costs. Competitors such as Fox Corp.’s Tubi, Paramount Skydance’s Pluto TV, and Roku’s The Roku Channel have seen growth in free, ad-supported streaming services.
Super Bowl Ad Sales Reflect Strong Advertising Demand
Disney’s announcement of sold-out Super Bowl ad slots underscores the continued strength of live sports advertising, even in a competitive market. The Super Bowl remains one of the most sought-after advertising opportunities, with high demand driving premium pricing.
No Timeline for Launch Yet
D'Amaro clarified that Disney has “nothing specific to announce today” regarding a free streaming product but confirmed the company is actively considering the option. Earlier reports, including one from Business Insider in July, suggested Disney was exploring ways to make some Disney+ content available for free.
The potential free service would aim to balance revenue growth with accessibility, though details on content availability, ad load, and regional rollout remain undisclosed.