Disney says it’s ‘exploring’ adding a free tier to Disney Plus

Like other major streamers, Disney Plus is facing increasing competition from free-to-watch services like YouTube.

Disney is looking into launching a free streaming option. When asked about Disney’s plans for free, ad-supported streaming during an earnings call on Wednesday, Disney CEO Josh D’Amaro confirmed the company is “exploring a free product for consumers.”

D’Amaro added that a free tier will help drive growth and expand the streaming service’s reach “to a customer segment that’s more price sensitive.” Though D’Amaro said that there’s “nothing specific to announce today,” he noted that a free tier is “definitely something that we’re considering.”

In July, Business Insider reported that Disney’s chief product and technology officer, Adam Smith, brought up the possibility of a free streaming tier during a company town hall. Streaming services like Disney Plus, Netflix, and HBO Max are facing increasing competition from YouTube, which has taken steps to make its platform look more like TV with “Stations” that play content 24/7 and a way for creators to organize videos into “seasons.”