Disney CEO Reveals Possible Ad-Supported Free Disney+ Tier; TikTok Deal Lets Creators Use Disney Characters
Disney CEO Damaro said the company is considering an ad-supported free tier for Disney+ to reach price-sensitive users, though no launch date has been set. The move is based on three strategic factors: expanding reach, strong ad inventory sales, and boosting subscriber growth. Disney+ has about 130 million global subscribers. Separately, Disney has partnered with TikTok to allow creators to use its characters and scenes in short videos, which will also appear on Disney+’s Verts section.
Damaro said the initiative aims to reach users who are unwilling to pay for mainstream subscriptions, but the company has not yet announced a specific launch timeline. Disney is actively evaluating the plan, and no further details can be disclosed at this stage.
Disney noted that offering a free service is based on three strategic considerations. First, it would further expand business coverage and reach price-sensitive consumer groups; expanding user reach is one of the company's strategic priorities. Second, unlike many video advertising-on-demand competitors, Disney's current ad inventory is selling well, and additional inventory would help accelerate advertising revenue growth. Finally, a freemium service would help drive subscriber growth at the top of the funnel for Disney+.
Currently, competitors such as Apple TV and Netflix do not offer a fully free tier, while platforms like Tubi, Pluto TV, and YouTube provide free content. According to statistics, Disney+ has about 130 million subscribers globally and is one of the most-watched streaming services in the United States.
Additionally, Disney recently reached a partnership with TikTok. Under the agreement, TikTok creators will be able to use classic characters and scenes from Disney films and shows to create short videos. These will not only be posted on TikTok but will also be simultaneously available on Disney+ in the Verts section, which showcases vertical videos.
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