Disney is exploring the idea of launching a free, ad-supported tier of Disney+ to give users access to a limited selection of content at no cost, according to a report by Business Insider.
The plan remains in the discussion phase. Disney has not made an official statement confirming the initiative, nor has it indicated when—or if—such a service might roll out. However, the move underscores the mounting pressure Disney faces from free streaming platforms like YouTube, Tubi, and The Roku Channel, all of which have been steadily eating into traditional TV viewership.
Sources familiar with the matter said Disney’s Chief Product and Technology Officer, Adam Smith, floated the idea during an internal town hall on the company’s streaming strategy.
Nielsen figures paint a clear picture of this shift: free streaming services captured 18.7 percent of total US TV viewing time in April 2026, up from 16.8 percent last year and 12.7 percent in April 2024. YouTube drives much of this surge as viewers increasingly dump paid subscriptions for free, ad-supported alternatives.
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The trend isn’t happening in isolation—soaring subscription prices have pushed many consumers to look elsewhere for entertainment. At present, Disney+’s ad-supported tier costs $12.99 a month when bundled with Hulu, while the ad-free option comes in at $19.99 monthly.
Introducing a completely free tier could work in Disney’s favor on two fronts: pulling in fresh users who might otherwise turn to YouTube or Tubi, and setting Disney+ apart from rivals such as Netflix, Apple TV+, and Paramount+, none of which currently offer a permanent free-viewing option.
This isn’t Disney’s first move to keep pace with changing viewing habits. The company has already rolled out vertical video clips on its app to boost engagement, a nod to the short-form content culture popularized by platforms like TikTok and YouTube Shorts. Meanwhile, competitors aren’t sitting still either—Netflix is reportedly exploring live TV channels, subscription bundles, and a bigger push into short-form video.
