It’s no secret that streaming services are struggling to keep pace with YouTube. Google’s video platform now claims a commanding share of connected TV watch time worldwide, making it an imposing rival for traditional TV outlets and fellow streaming services alike.
Netflix’s strategy for taking on YouTube has included a recent rash of creator signings, a podcast push, and a growing emphasis on live sports. But while the streamer bulks up its library with digital-native content from YouTubers, Disney Plus is reportedly taking a different approach.
According to Business Insider, Disney is mulling over the possibility of introducing a free ad-supported tier to its flagship streaming service. A staffer noted that the concept was recently addressed by product and tech chief Adam Smith, who discussed the potential addition of a free-tier content during a streaming town hall on July 9.
While Smith didn’t offer exact details on timing or execution, if the Mouse House is considering a free tier, now would be the time to move forward.
Disney Plus has already introduced always-on channels (something Netflix is reportedly considering as well), along with short-form vertical content. The addition of a free tier would give Disney Plus an edge over services like Netflix, Apple TV, and Amazon Prime Video while allowing it to tap into the significant viewership growth achieved by free-to-watch services like Tubi and The Roku Channel.
As Business Insider noted, recent Nielsen data shows that “the three largest free streamers accounted for 18.7% of watch time on US TVs in April, up from 16.8% a year earlier and 12.7% in April 2024.”
Young viewers are especially prone to choosing free ad-supported streaming television (FAST) over subscription-based content. According to Comcast, 53% of Gen Zers have canceled a subscription-based streaming service in the past year; in the same period, 47% have watched FAST content.
In other words: if Disney hopes to continue attracting viewership—and avoid losing more traction to free services like YouTube—it should consider getting into the FAST lane.
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