Disney is reportedly considering a free, ad-supported tier for Disney+ to counter younger viewers migrating to YouTube. Business Insider reports that Chief Product and Technology Officer Adam Smith hinted at the plan during a town hall, though no timeline or content specifics were disclosed.

The move would differentiate Disney+ from rivals. Netflix offers no free tier, Prime Video requires a $139 annual Prime membership for its ad-supported plan, and Apple TV+ only provides select season premieres at no cost. Disney already launched vertical video shorts this year, which could populate a free tier with bite-sized original programming.

Current Disney+ pricing sits at $13 monthly for the ad-supported Hulu bundle and $20 for the ad-free premium bundle. A free tier would likely carry heavier ad loads and limited library access, potentially serving as a funnel toward paid subscriptions.

If executed, this represents a significant strategic pivot — trading immediate ARPU for audience retention in a demographic increasingly unwilling to pay for streaming. The risk: cannibalizing existing subscribers unless the free tier's content ceiling is carefully calibrated.