After jacking up prices, Disney+ and Netflix consider offering free alternatives
Ars Technica • • business
Key Points:
- Disney CEO Josh D’Amaro confirmed the company is exploring a free streaming product to attract more price-sensitive customers and boost ad revenue amid challenges like subscriber plateau and churn.
- A free tier could increase Disney+ subscriber growth by raising awareness and differentiating the service from competitors like Netflix and HBO Max, which have also faced criticism for repeated price hikes.
- Disney has not yet detailed the specifics or timeline for the free offering, but reports suggest some Disney+ content may become accessible without a paywall in the future.
- The move reflects growing consumer interest in free, ad-supported streaming options, with surveys showing increased adoption of FAST (free ad-supported streaming television) services among US households.
- Netflix is also cautiously considering a free streaming tier but emphasizes the need to avoid cannibalizing paid subscriptions and ensuring a strong ad business to support the model.
