Disney Reviews Free Ad-Supported Streaming Product

Walt Disney is reviewing a free ad-supported streaming product for Disney+. This strategy aims to expand the service's reach to price-sensitive users. In its third-quarter shareholder letter for fiscal year 2026, Disney reported revenues of $25.2 billion, a 7% increase compared to the same period last year, and an adjusted earnings per share (EPS) of $2.06. CEO Josh D'Amaro mentioned that the free product could be a way to reach price-sensitive customers. The launch date, availability, and content of the product have not yet been announced. The review of the free product is related to Disney's streaming monetization strategy, with subscription video on demand (SVOD) revenue increasing by 11% year-over-year. However, the growth rate of advertising revenue was only 3%. Disney stated that its parks and streaming businesses drove growth in its third-quarter results. The company plans to grow Disney+ as a digital hub and introduce an expanded ecosystem that includes games, merchandise, and personalized benefits starting in spring 2027. Major sports and live events remain key assets for the advertising business, and Disney sold out its Super Bowl ad inventory for February 2027. The free ad-supported streaming market is also growing, accounting for 5.7% of total TV viewing in the U.S. as of May 2025, according to Nielsen.

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