Disney CEO Josh D'Amaro said the company is exploring a free, ad-supported streaming tier to reach price-sensitive consumers, while the company also announced it has already sold out Super Bowl advertising inventory for February's game on ABC and ESPN.
Disney is weighing the launch of a free, ad-supported streaming product as it looks to capture more price-sensitive consumers, CEO Josh D'Amaro disclosed Wednesday during a quarterly earnings call with investors.
"We see it as a way to expand our reach to a customer segment that's more price-sensitive, and expanding our reach ... is one of our strategic priorities," D'Amaro said during the call.
D'Amaro stopped short of making any official announcement, but said a free offering could help drive top-of-funnel subscriber growth for Disney+. He also noted that, unlike many of its ad-supported competitors, Disney holds more ad inventory that "would actually help us accelerate our ad revenue growth."
Business Insider had earlier reported that Disney was weighing a free tier before Wednesday's call.
The consideration places Disney alongside an expanding field of free, ad-supported streaming services. Fox Corporation's Tubi, Paramount Skydance's Pluto TV, and Roku's The Roku Channel have all attracted growing audiences as the overall cost of streaming has increased. Cheaper, ad-supported plans from major platforms including Netflix and Disney+ have become central to subscriber acquisition strategies across the industry.
Separately, Disney confirmed Wednesday that it has sold out advertising inventory for the upcoming Super Bowl, set to air on the company's ABC and ESPN networks in February. Thirty-second spots for this year's game have reportedly been sold for $9 million each, reflecting the Super Bowl's standing as the highest-rated live television event for ad rates.
Chief Financial Officer Hugh Johnston told investors the company was "pleased" with commitments from its recent Upfront negotiations, adding that volume commitments were up double digits compared to last year. Johnston attributed some of the gains to marquee live events including the College Football National Championship, the Grammys, and the Oscars.
"Overall, the current tone I would have is to characterize the market is healthy in sports," Johnston said, "but at the same time, competitive in streaming, especially given the growth of supply in the marketplace."
Johnston noted the increased supply of streaming ad inventory has created pricing pressure. Disney's quarterly earnings results reflected those dynamics — the company reported that lower ad rates weighed on revenue for its overall entertainment unit.
The moves underscore how advertising has become an increasingly central pillar of streaming profitability across the industry, even as the competitive landscape for ad dollars grows more crowded. For Disney, the combination of live sports rights, tentpole entertainment programming, and a potential free streaming tier signals an accelerated push to capture a broader share of that market heading into the next fiscal year.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
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