The Walt Disney Company (NYSE:DIS) is considering launching a free version of Disney+ as it seeks to broaden its streaming audience and better compete with the growing popularity of free, advertising-supported video platforms, according to a Business Insider report published on Friday.
Disney shares were little changed in premarket trading.
Free Streaming Models Gain Momentum
Business Insider reported that Disney executives have been discussing the possibility of introducing a free Disney+ tier, although the proposal remains in its early stages and no decisions have been made regarding timing, rollout or the markets where it could be introduced.
The discussions come as more viewers shift toward free, ad-supported streaming platforms such as YouTube, Tubi and The Roku Channel.
The report highlighted a broader transformation across the streaming industry as media companies search for new ways to expand audiences while increasing advertising revenue.
According to Nielsen data cited by Business Insider, free streaming platforms accounted for 18.7% of U.S. television viewing in April 2026, up from 12.7% two years earlier, reflecting growing consumer sensitivity to rising subscription costs.
Disney Evaluates New Growth Initiatives
Disney already offers lower-priced, advertising-supported Disney+ subscription plans in several regions. However, introducing a completely free service would represent a significant change to its current streaming strategy.
Competitors such as Tubi and Pluto TV have successfully built large user bases through free, advertising-funded platforms, while YouTube has continued to expand its share of television viewing.
Business Insider also reported that Disney is evaluating several additional initiatives aimed at increasing viewer engagement, including short-form vertical videos, micro-dramas and podcasts, as Chief Executive Josh D’Amaro works to strengthen the company’s streaming business.
The report noted that discussions remain preliminary and that no final decisions have yet been reached.