Disney Explores Free Streaming Option To Expand Reach

Disney CEO Josh D’Amaro said the company is evaluating the idea but is not ready to announce any plans.

“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.

According to the CEO, a free offering could help Disney attract consumers who are more sensitive to subscription prices, an audience the company views as an important opportunity for long-term growth.

Disney Sees Opportunity To Grow Ad Revenue and Disney+ Subscribers

Beyond expanding its audience, Disney also sees advertising as a key benefit of a free streaming service.

“Unlike a lot of our AVOD competitors, we’re fairly well-sold, meaning more inventory would actually help us accelerate our ad revenue growth,” D’Amaro said.

He added that a free streaming product could also serve as an entry point for new customers before they eventually upgrade to a paid Disney+ subscription.

“As you mentioned in your question, a free offering could help us drive top-of-funnel Disney+ subscriber growth,” he said. “Nothing specific to announce today, but definitely something that we’re considering.”

Free streaming platforms such as Tubi, Pluto TV and The Roku Channel have gained popularity as consumers seek lower-cost entertainment options amid rising subscription prices.

Entertainment Drives Disney Earnings Beat

Adjusted earnings climbed to $2.06 per share, topping Wall Street’s consensus estimate of $1.86. Revenue increased 7% year over year to $25.25 billion, narrowly missing analysts’ expectations of $25.40 billion.

Disney’s entertainment division posted $11.35 billion in revenue, marking a 6% increase from the same period last year.

The quarter was also supported by the strong theatrical performance of “Toy Story 5,” which crossed $1 billion at the global box office.

Price Action: Walt Disney shares closed 3.65% higher at $101.76 on Wednesday and were little changed in after-hours trading, slipping 0.07% to $101.69, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings, Disney ranks in the 80th percentile for Growth; although the stock continues to trend lower in the medium and long term, it is positive in the short term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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