Key Takeaways
- Free streaming options are more popular than ever; Tubi, for example, has 100 million monthly active users.
- Disney is hoping to capture a larger audience by offering some of its streaming content for free.
- Disney CEO Josh D’Amaro said that there were a few strategic benefits of offering a free streaming option, including “expanding our reach” and growing ad revenue.
Disney is looking into a free, ad-supported streaming service, CEO Josh D’Amaro confirmed during an earnings call this week.
“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 on the call.
Also on the call, D’Amaro outlined the strategic benefits of offering a free streaming option. He said that first, free streaming would expand the company’s reach by better serving customers who are sensitive to price changes and concerned about affordability.
“Expanding our reach is, as we’ve talked about before, one of our strategic priorities,” D’Amaro told investors.
In addition, Disney would grow its advertising revenue by adding more viewers. A free streaming option could also eventually drive more paying subscribers to Disney+.
“So nothing specific to announce today, but definitely something that we’re considering,” D’Amaro said.
D’Amaro also tackled the core question many analysts were asking: Can Disney+ and Hulu sustain the kind of subscriber growth needed to validate Disney’s $24 billion bet on content?
“We strongly believe that a large global user base is strategic to ensuring that we’re able to drive longer-term growth, especially as new technology cycles emerge, like AI and the consumer touch points that our streaming platforms provide,” D’Amaro said.
Consumers provide Disney with data to enable personalization and product innovation. The data also establishes a foundation for more revenue streams over time. Disney wants to make Disney+ “the digital centerpiece of our relationship with fans,” D’Amaro said.
“We’re just playing a different game,” he added.
Free streaming services are gaining traction
Free streaming services are capturing more of the market. For example, free streaming platform Tubi, owned by Fox, achieved profitability for the first time last year. With 100 million active users and one billion hours of content streamed per month, Tubi attracts younger audiences who are tolerant of ads.
In January, Tubi accounted for 2.1% of all streaming minutes measured by Nielsen’s The Gauge, a monthly snapshot of TV viewing behavior. Tubi was ahead of NBCUniversal’s Peacock and Warner Bros. Discovery’s HBO Max, but behind Disney+, which captured 4.9% of viewers.
“People used to cut the cord, now they’re canceling subscriptions. And is that driving more consumption into free streaming? Absolutely,” Tubi chief content officer Adam Lewinson told CNBC in December.
Disney stopped reporting subscriber numbers last year, but as of its final official disclosure in late 2025, the company reported a combined 195.7 million Disney+ and Hulu subscriptions.
Disney’s streaming business is growing
Disney’s quarterly results this week saw the company far exceed Wall Street expectations for earnings while falling short on revenue. Revenue was $25.25 billion, less than the $25.4 billion expected, while earnings per share were $2.06 versus $1.86 expected.
Streaming propelled the company’s quarterly results; Disney’s entertainment streaming business, consisting of Disney+ and Hulu, grew. Revenue increased 11% to $5.53 billion, driven by more streaming customers, price hikes and growth in ad revenue.
Key Takeaways
- Free streaming options are more popular than ever; Tubi, for example, has 100 million monthly active users.
- Disney is hoping to capture a larger audience by offering some of its streaming content for free.
- Disney CEO Josh D’Amaro said that there were a few strategic benefits of offering a free streaming option, including “expanding our reach” and growing ad revenue.
Disney is looking into a free, ad-supported streaming service, CEO Josh D’Amaro confirmed during an earnings call this week.
“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 on the call.
Also on the call, D’Amaro outlined the strategic benefits of offering a free streaming option. He said that first, free streaming would expand the company’s reach by better serving customers who are sensitive to price changes and concerned about affordability.