Disney+ Exploring Offering A Free Tier
Disney is in a constant battle with other streaming services and platforms like Netflix, YouTube and TikTok for people’s attention. Trying to grab as many eyeballs as possible is the aim of the game when it comes to advertising revenue and according to The Business Insider, Disney has been exploring options to make Disney+ available to more people by offering a free tier.
During a recent town hall meeting, Disney’s Product and tech chief, Adam Smith, spoke about enabling free-tier content, though he didn’t share a timeline for when this would happen.
This plan is a part of Disney’s streaming strategy to serve fans better and would follow the trend in Disney offering some of its content on free platforms like Tubi, YouTube and ITVX.
Over the past few years, we’ve seen an explosion in the amount of viewing done by the general public on free platforms, and that is likely only going to rise, especially as living expenses continue to rise.
Disney+ already offers a discounted tier with ads, but a free tier would encourage more people to watch the platform. This could come in the form of FAST (Free Ad Supported Channels), such as channels like ABC News Live, or other focused channels based on older content. Alternatively, a small selection of shows and films could be made available for everyone, but likely with far more ads, to encourage people to sign up, or at least interact with Disney+ more often.
There are already a number of channels (or Streams, as Disney calls them), available on Disney+ in the United States, which will likely continue to expand in the future. Especially internationally, where Disney has been slow to expand this feature. The company has also been expanding into podcasts and YouTube, making new episodes available to stream for free on different platforms, to reach a larger audience.
With the impending merger between Hulu and Disney+ expected in the US later this year, along with the introduction of vertical videos (Verts) and the launch of ESPN Unlimited. Disney+ is being pushed as the main digital hub for the Disney company. Offering a free tier, would only increase that reach.
Many of the other streaming platforms have been making investments in free streaming platforms, such as FOX in Tubi and Amazon in FreeVee. Along with Comcast with ITV and Paramount in Channel 5 in the UK. Paramount+ and Apple TV also allow access to a small selection of titles for free, while Amazon recently merged its free platform, Freely.
Roger’s Take: I’ve been saying for many years that Disney+ should operate a free tier, with a small selection of shows and films available on demand, along with dozens of “Streams” of older shows and films to reach the audience that won’t pay for streaming services. The cost of having all of the different platforms is just too much, and people are being more picky. Someone watching a free Stream will at least generate additional revenue from advertising and increase engagement within the app. If someone is constantly on Disney+ to watch free content, it’s more likely they might want to upgrade to get the full experience.
Ad-supported content is already so important to Disney+ and Hulu, a free tier could drastically boost the watch time for older content. It’s unlikely Disney is going to offer the latest films and original shows on the free tier (maybe the first episode!), but Disney+ needs to keep evolving to fit users’ needs, which often means offering it for free, but with more ads to make money! Disney has been making money from free-to-air channels like ABC for decades, so maybe it’s looking at that success as a potential future for Disney+.
What do you think about Disney+ offering a free tier? Let me know on social media!
