Disney Explores Free Ad-Supported Streaming; 2027 Super Bowl Ad Slots Sold Out at $9 Million

Disney is considering launching a free, ad-supported streaming service. In an investor call on Wednesday, Chief Executive Josh D'Amaro said the company is exploring a consumer-facing free ad-supported streaming product, describing it as a way to expand its reach among price-sensitive customers, with broader reach ranking among the company's strategic priorities. D'Amaro noted that unlike many ad-supported competitors, Disney holds more advertising inventory, which should help accelerate ad revenue growth.

Disney also announced that advertising slots for the Super Bowl airing in February 2026 on ABC and ESPN have sold out. The Super Bowl has long commanded the highest ad rates in live television, with 30-second slots priced at $9 million. Chief Financial Officer Hugh Johnston told the Wednesday call that the company is pleased with client commitments from recent upfront negotiations, noting commitment volumes grew by double digits year over year. He added that major live events, including the College Football National Championship, the Grammy Awards and the Oscars, drove advertising sales.

Assessing the current market, Johnston said the sports advertising market is healthy, but streaming remains highly competitive, with rising ad supply creating pricing pressure. In its quarterly results released Wednesday, Disney disclosed that lower ad rates weighed on overall entertainment segment revenue.