<\/p>\n
Disney is quietly considering offering a new free streaming option in response to shifting consumer behavior.\u00a0<\/p>\n
The company, which owns streaming services Disney+, Hulu, and ESPN, recently saw revenue increase across all three platforms after raising subscription prices in October. In the first quarter of 2026, Disney\u2019s SVOD (subscription video on demand) revenue rose by 11% year over year, according to its latest earnings report.\u00a0<\/p>\n
Amid revenue growth, Disney has been working to reduce churn in recent months after Disney+ and Hulu saw churn rates spike to 7.8% and 9.6%, respectively, in September last year during the Jimmy Kimmel controversy, according to recent data from Antenna. However, those rates declined to 4.1% and 4.9% by December.\u00a0<\/p>\n
During an earnings call in May, Josh D\u2019Amaro said that the company is \u201chighly focused on churn\u201d in its streaming business and that Disney+ is critical to achieving this initiative.\u00a0<\/p>\n
\u201cAll of the opportunities that we have to drive value at this company, reducing churn, Disney+ might be the single most significant opportunity that we have,\u201d said D\u2019Amaro. \u201cAnd so it’s probably not surprising on pushing the entire organization to prioritize against that goal.\u201d<\/p>\n
Disney weighs a free Disney+ streaming option<\/p>\n
One opportunity the company is reportedly exploring is offering a free version of Disney+ to consumers, according to a recent Business Insider report.\u00a0<\/p>\n
Disney is considering allowing some of its Disney+ streaming content on this free version, a move that would be part of an ongoing discussion to better serve consumers.\u00a0<\/p>\n
Adam Smith, a chief product and technology officer at Disney, discussed this potential free Disney+ option during a company streaming town hall on July 9. He didn\u2019t provide a potential timeline for this free tier or any other additional information.\u00a0<\/p>\n
Related: Disney suffers alarming loss after massive consumer boycott<\/p>\n
The move from Disney comes after it faced backlash from subscribers last year for increasing several Disney+ plans by at least $2 in October. Some even threatened to cancel their subscription due to the higher prices.\u00a0<\/p>\n
At the time, Disney+ Basic (with ads) increased from $9.99 to $11.99, while Disney+ Premium climbed from $15.99 to $18.99, and the Disney+\/Hulu Bundle rose from $10.99 to $12.99.<\/p>\n
The price increases came after Disney+ plans went up by $2 in October 2024.<\/p>\n
Disney is contemplating offering a free tier of Disney+ to consumers. <\/p>\n
Marvin Samuel Tolentino Pineda / Getty Images<\/p>\n
Disney is responding to the growing shift toward free streaming<\/p>\n
Many consumers nationwide have grown tired of streaming price hikes and are becoming more comfortable with pulling the plug on their subscriptions.\u00a0<\/p>\n
A survey from Reviews.org in June found that 52% of U.S. consumers have canceled or downgraded their streaming plans because of a price increase, and 43% are likely to cancel at least one streaming service in the next three months.<\/p>\n
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Also, 55% said they would use a free streaming platform because they can no longer have a reason to pay for another streaming subscription.\u00a0<\/p>\n
The top three free streaming services that consumers in the survey said they use are Tubi, The Roku Channel, and Pluto TV. These free streaming platforms primarily generate revenue by running video ads during movies and TV shows.\u00a0<\/p>\n
In a separate Reviews.org report, Trevor Wheelwright, a TV, streaming, and internet expert, said survey data reveal that \u201ccost plays a huge role in which streaming services consumers decide to keep \u2014 or kick.\u201d\u00a0<\/p>\n
\u201cFree streaming services are becoming a practical part of how many Americans watch TV, whether it\u2019s catching videos and concerts on YouTube or discovering shows on Free, Ad-Supported Television (FAST),\u201d said Wheelwright.<\/p>\n
\u201cNot everything on streaming needs to be the latest rentals or releases \u2014 turning to lower-cost platforms allows consumers to maximize their day-to-day entertainment without maxing out their budget,\u201d he added.\u00a0<\/p>\n
Amid this shift in consumer behavior, Fox Corporation CEO Lachlan Murdoch revealed during an earnings call in May that Tubi, which Fox owns, has \u201cnearly 100 million monthly active users.\u201d The platform\u2019s revenue increased by 23% year over year in the first few months of this year, he added.\u00a0<\/p>\n
\u201cEngagement was also solid with a 19% increase in total view time, maintaining strong momentum from library content, Tubi originals and creator-led titles,\u201d said Murdoch.\u00a0<\/p>\n
Paramount, which owns Pluto TV, is also seeing monthly active users and engagement grow on the platform.<\/p>\n
\u201cI am a big believer in the FAST space,\u201d said Paramount CEO David Ellison during an earnings call in February. \u201cAnd I think when you really look at globally, FAST is something that is only going to grow in importance, and when you look at the signs that are also really encouraging on Pluto, we are seeing engagement grow.\u201d<\/p>\n
Jon Giegengack, a principal at Hub Entertainment Research, said in a TV Tech report in May that free streaming services will continue growing in popularity, and that\u2019s not only because they are free.\u00a0<\/p>\n
\u201c\u2018Free\u2019 is a reason for people to try a service, but it\u2019s not enough to create real engagement over the long term,\u201d said Giegengack.<\/p>\n
\u201cHowever, this research shows the library content most FASTs are built around is actually a selling point for many users, as is the low-friction user experience of services that often don\u2019t even require you to create an account,\u201d he added. \u201cAs the cost of streaming \u2014 and everything else \u2014 keeps rising, free streaming will keep gaining ground.\u201d\u00a0\u00a0<\/p>\n
Related: Comcast eyes acquisition of 33-year-old rival amid struggles<\/p>\n
#Disney #considers #launching #free #streaming #option #consumers<\/p>\n","protected":false},"excerpt":{"rendered":"
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