Disney CEO Josh D’Amaro confirmed Wednesday that the entertainment giant is considering adding a free option for Disney Plus as a way to attract more people to the streaming service.
“We’re exploring a free product for consumers,” D’Amaro said during the company’s 2026 third-quarter earnings call. “A free offering could help us drive top-of-funnel Disney Plus subscriber growth.”
Also on Wednesday, Disney and TikTok announced that they have struck a deal to bring Disney-themed TikToks, made by selected creators, into the Disney Plus app. These videos will be in the app’s new Verts section and will be rolling out in a pilot program in the US later this year.
The House of Mouse’s hints about a potential free tier appear to confirm a report from Business Insider last month. The rumored new option would help Disney keep its ground in an ever-changing streaming landscape. In June, Fox announced that it is acquiring Roku for $22 billion.
Meanwhile, the ongoing sale of Warner Bros. Discover to Paramount SkyDance (itself created from a merger only last year) has sparked protests by entertainment industry workers about consolidations, amid concerns about job losses, fewer projects produced and for newsrooms, less editorial freedom. David Ellison, CEO of Paramount SkyDance and son of tech tycoon Larry Ellison, has rejected these concerns.
Disney executives put a rosier spin on things.
“A more consolidated industry is really a better investment backdrop,” D’Amaro said, “and we have a long history of partnering and streaming, and we believe that we can just keep building on that.”
Disney has its own Plus app, Hulu and ESPN, and has deals with Paramount-owned HBO Max, fueling its 11% increase in streaming-related earnings in the third quarter to a total of $5.53 billion. But free live TV streamers, like Fubo, are enticing viewers who don’t want to break the bank to watch individual live events. That’s where a free tier for Disney Plus may make sense.
Disney’s world beyond streaming
“It’s become clear Disney Plus is no longer just a streaming service, and perhaps that’s a good thing,” said Mike Proulx, research director at Forrester. Streaming “has a customer relationship problem,” which Disney is trying to solve by making its streaming service the focal point of its digital offerings.
“Movies and series are the foundation, but live sports, games, merchandise, creator content, and future perks give consumers more reasons to stay engaged with Disney,” Proulx said.
This is certainly what Disney is hoping for. D’Amaro defended recent box office flops Star Wars: The Mandalorian and Grogu and the live-action Moana. He said that while these didn’t meet box office expectations, the movies prompted growth in other parts of the business.
For example, The Mandalorian and Guru barely broke even, making it the lowest-grossing live-action Star Wars flick. But it also prompted a surge in merchandise sales – like apparel and Lego sets – and prompted visits to Walt Disney World’s Millennium Falcon attraction. The original Moana movie is one of the most-streamed movies on Disney Plus, and D’Amaro said Disney expects its live-action companion to perform well, despite reportedly standing to lose $100 million at the box office.
Then there’s a franchise like Toy Story, whose latest installment this summer was an undeniable theatrical success and also supported Disney’s other businesses.
“The nature of the film industry is such that it is more of a portfolio game,” D’Amaro said. “The theatrical window, in a lot of ways, it’s just one data point. And the real value of that IP is the cumulative benefit of decades-long storytelling and our ability to take that IP and play it into the entirety of the Disney flywheel.”
Katelyn Chedraoui
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