Streaming subscribers are feeling the pinch as major platforms continue to raise prices, prompting Disney and Netflix to explore a new option: a free tier. This potential shift matters because it could offer a budget-friendly entry point for viewers who have already cut back on entertainment spending. For cost-conscious households, this development signals a possible return to ad-supported viewing models that were common before the streaming boom.
Streaming giants consider ad-supported entry points as prices rise
Disney CEO Josh D'Amaro confirmed the company is actively exploring a free ad-supported tier for Disney+. The move comes as Disney+ has raised prices multiple times since 2024, with the most recent increase occurring in October 2025. D'Amaro stated that a free option could provide various benefits, particularly for "price-sensitive" customers who may not want to endure the regular price increases currently charged to subscribers.
Netflix Co-CEO Greg Peters stated the company is considering free options but must proceed carefully to avoid cannibalizing paid tiers. The streaming giant has over 325 million subscribers compared to Disney+'s 131.6 million. Peters said the company must think "carefully" about a free offering because it could eventually cannibalize more profitable paid tiers.
Both companies are facing subscriber growth fatigue and price sensitivity among consumers. This shared challenge drives their parallel exploration of lower-cost or free access models. We looked at streaming service pricing trends earlier while tracking these industry shifts.
Discussion
0 comments
Log in to join the thread with a thoughtful take, question, or correction.