\n<\/p>\n
Disney is looking into a free, ad-supported streaming service, CEO Josh D\u2019Amaro confirmed during an earnings call<\/a> this week.\u00a0<\/p>\n \u201cWe\u2019re exploring a free product for consumers, one that will allow us to accomplish several goals and hopefully do that efficiently,\u201d D\u2019Amaro said on the call.\u00a0<\/p>\n Also on the call, D\u2019Amaro outlined the strategic benefits of offering a free streaming option. He said that first, free streaming would expand the company\u2019s reach by better serving customers who are sensitive to price changes and concerned about affordability.\u00a0\u00a0<\/p>\n \u201cExpanding our reach is, as we\u2019ve talked about before, one of our strategic priorities,\u201d D\u2019Amaro told investors.\u00a0<\/p>\n In addition, Disney would grow its advertising revenue by adding more viewers. A free streaming option could also eventually drive more paying subscribers to Disney+.\u00a0<\/p>\n \u201cSo nothing specific to announce today, but definitely something that we\u2019re considering,\u201d D\u2019Amaro said.\u00a0<\/p>\n D\u2019Amaro also tackled the core question many analysts were asking: Can Disney+ and Hulu sustain the kind of subscriber growth needed to validate Disney\u2019s $24 billion bet on content<\/a>?<\/p>\n \u201cWe strongly believe that a large global user base is strategic to ensuring that we\u2019re able to drive longer-term growth, especially as new technology cycles emerge, like AI and the consumer touch points that our streaming platforms provide,\u201d D\u2019Amaro said.\u00a0<\/p>\n Consumers provide Disney with data to enable personalization and product innovation. The data also establishes a foundation for more revenue streams over time. Disney wants to make Disney+ \u201cthe digital centerpiece of our relationship with fans,\u201d D\u2019Amaro said.\u00a0<\/p>\n \u201cWe\u2019re just playing a different game,\u201d he added.\u00a0<\/p>\n Free streaming services are capturing more of the market. For example, free streaming platform Tubi, owned by Fox, achieved profitability<\/a> for the first time last year. With 100 million active users and one billion hours of content streamed per month, Tubi attracts younger audiences who are tolerant of ads.\u00a0<\/p>\n In January, Tubi accounted for 2.1% of all streaming minutes measured by Nielsen\u2019s The Gauge<\/a>, a monthly snapshot of TV viewing behavior. Tubi was ahead of NBCUniversal\u2019s Peacock and Warner Bros. Discovery\u2019s HBO Max, but behind Disney+, which captured 4.9% of viewers.\u00a0<\/p>\n \u201cPeople used to cut the cord, now they\u2019re canceling subscriptions. And is that driving more consumption into free streaming? Absolutely,\u201d Tubi chief content officer Adam Lewinson told CNBC<\/a> in December.<\/p>\n Disney stopped reporting<\/a> subscriber numbers last year, but as of its final official disclosure<\/a> in late 2025, the company reported a combined 195.7 million Disney+ and Hulu subscriptions.<\/p>\n Disney\u2019s quarterly results<\/a> this week saw the company far exceed<\/a> Wall Street expectations for earnings while falling short on revenue. Revenue was $25.25 billion, less than the $25.4 billion expected, while earnings per share were $2.06 versus $1.86 expected.\u00a0<\/p>\n Streaming propelled the company\u2019s quarterly results; Disney\u2019s entertainment streaming business, consisting of Disney+ and Hulu, grew. Revenue increased 11% to $5.53 billion, driven by more streaming customers, price hikes and growth in ad revenue.<\/p>\n<\/p><\/div>\n Disney is looking into a free, ad-supported streaming service, CEO Josh D\u2019Amaro confirmed during an earnings call<\/a> this week.\u00a0<\/p>\n \u201cWe\u2019re exploring a free product for consumers, one that will allow us to accomplish several goals and hopefully do that efficiently,\u201d D\u2019Amaro said on the call.\u00a0<\/p>\n Also on the call, D\u2019Amaro outlined the strategic benefits of offering a free streaming option. He said that first, free streaming would expand the company\u2019s reach by better serving customers who are sensitive to price changes and concerned about affordability.\u00a0\u00a0<\/p>\n<\/p><\/div>\nFree streaming services are gaining traction<\/h2>\n
Disney\u2019s streaming business is growing<\/h2>\n
Key Takeaways<\/h2>\n
\n