Disney CEO Josh D'Amaro confirmed on August 5, 2026, that the company is exploring a free, ad-supported streaming product aimed at consumers [1, 2, 3, 4]. "We're exploring a free product for consumers, one that will allow us to accomplish several goals and hopefully do that efficiently," D'Amaro said during an earnings call [4].
The goal of the free streaming tier is to expand Disney's reach to price-sensitive customers and to boost advertising revenue [1, 2, 3, 4]. D'Amaro noted that "a free offering could help us drive top-of-funnel Disney+ subscriber growth" by increasing awareness among potential subscribers [3]. Disney executives emphasized the potential of the free tier to stimulate more subscriber interest at earlier stages of consumer consideration [1, 3, 4].
Disney's advertising inventory is relatively well sold compared to competitors, which gives the company an advantage in monetizing additional ad placements. "Unlike a lot of our AVOD competitors, we're fairly well-sold, meaning more inventory would actually help us accelerate our ad revenue growth," D'Amaro said [1].
Disney has already sold out its advertising spots for the 2027 Super Bowl broadcasts on ABC and ESPN. Thirty-second advertisement slots have been priced at about $9 million each [3]. This level of demand reflects strong advertiser interest ahead of the launch of the planned free streaming product.
Alongside streaming, Disney plans to broaden the Disney+ platform ecosystem in 2027 by adding games, merchandise, personalization, and exclusivity features aimed at cementing Disney+ as a "digital centerpiece" [2]. The company is also partnering with TikTok to bring fan-created, Disney-centric content to a short-form video feed on Disney+ [2].
Business Insider reported in July 2026 that Disney's chief product and technology officer, Adam Smith, had discussed the free streaming tier internally but no timeline or scope were shared then [1, 2, 4].
The next major advertising event is the 2027 Super Bowl in February, where Disney will air commercials at premium rates, underscoring the company’s push to expand its ad monetization ahead of the free tier’s possible launch [3].
