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Streaming shift

Disney+ explores free tier to counter YouTube growth

Disney+ is considering adding a free tier to its service in a bid to increase audience reach and compete with YouTube.
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Foto: Symbolbild | Wikimedia Commons · Symbolbild (Wikimedia Commons: Greg Peters) - nicht das Originalfoto der Quelle.
The essentials
  • Disney+ and Paramount+ are exploring free tiers to build audiences and grow advertising revenue.
  • Netflix co-CEO Greg Peters mentioned a free offering could be viable in certain markets.

Disney+ is looking to offer a free tier of its streaming service, aiming to remove barriers to entry and expand its user base. This strategy, similar to what Paramount+ is reportedly planning, is being considered in response to YouTube's growing presence in the market.

According to reports, Disney’s Chief Product & Technology Officer Adam Smith has discussed enabling free-tier content during internal streaming town halls. The goal is to allow users to engage with content before upselling them on paid subscriptions.

Paramount has also been working on plans to offer movies and shows to users without a subscription, according to an internal presentation. This move mirrors efforts by other major streamers to adapt to market conditions and user expectations shaped by free content.

Netflix's co-CEO Greg Peters mentioned in July that a free offering could make sense in some international markets. While the initial plan for Disney+ was to integrate user-generated content similar to YouTube, the future of those plans remains uncertain due to recent changes in strategic partnerships.

As YouTube continues to grow in terms of engagement and market share, other streaming platforms are adapting their strategies to remain competitive. These free tiers are part of an evolving landscape where user acquisition and retention are key.

Man in ceremonial uniform holds staff and hat before Canadian flag and ornate chairs.
Foto: 9to5mac.com
“a free offering could make sense in some markets”
What's next

The final decision on Disney+'s free tier is pending, and the success of similar initiatives by competitors will likely shape the next move.

Frequently asked questions

Why are streamers like Disney+ exploring free tiers?

To build audiences, grow advertising revenue, and compete with YouTube.

What did Netflix's co-CEO say about free tiers?

Greg Peters said a free offering could make sense in some international markets.

What is the status of Disney+'s YouTube-style content plans?

The future of those plans is unclear due to the dissolution of Sora and Disney's OpenAI deal.

Based on reporting by 9to5Mac, compiled by the Tradingbird newsroom. Published 03 Aug 2026, 18:09.
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