Disney Explores Free Ad-Supported Disney+ Tier to Compete with YouTube

Disney is considering launching a free, ad-supported tier of its Disney+ streaming service, according to a recent Business Insider report. This new option would offer a limited selection of flagship movies and TV shows, along with short videos, aiming to attract younger viewers who have been leaving the platform due to rising subscription costs. Currently, a Disney+ subscription in Israel costs 49.90 shekels per month, a price considered high by many households.

The move is part of Disney's strategy to counter the growing dominance of free streaming platforms like YouTube and Tubi, which together hold about 18.7% of total TV viewing time in the U.S. The proposed free tier may also include "FAST" channels, live, linear streams running 24/7 with advertisements, mirroring traditional TV but adapted for digital consumption. Additionally, Disney has started integrating vertical short-form videos within its app, similar to TikTok and Instagram Reels, suggesting a push toward lighter, free content.

Experts expect Disney will not make its entire content library available for free but will offer select episodes from popular series such as "The Mandalorian" and Marvel franchises to entice users to upgrade to the full premium subscription. This approach is similar to strategies used by other streaming services like Apple TV+.

Disney has not announced an official launch date for this free tier in Israel or globally. Adam Smith, Disney's Chief Technology Officer, indicated that discussions are advanced but final decisions depend on the business model's viability and advertising revenue potential. For Israeli consumers, this development could significantly impact monthly entertainment expenses by providing a no-cost alternative to paid streaming services.