After jacking up prices, Disney+ and Netflix consider offering free alternatives
Summary
Disney is thinking about offering a free streaming service to reach more customers who don’t want to pay high prices. Netflix is also considering a free option but has no immediate plans to launch one. Both companies have raised subscription prices recently and face competition from free, ad-supported streaming services.Key Facts
- Disney CEO Josh D’Amaro said the company is exploring a free streaming product to attract price-sensitive customers.
- The free service would include advertisements to generate more ad revenue for Disney.
- Disney+ has raised its US prices twice in 2024, including a $2-$3 monthly increase depending on the plan.
- Netflix CEO Greg Peters said a free service might make sense but noted concerns about losing paying customers.
- Netflix also raised prices twice recently, by $1 to $2 per month depending on the plan.
- Both Disney+ and Netflix face competition from free streaming services that show ads, known as FAST (free ad-supported streaming TV) platforms.
- Surveys show increasing use of ad-supported streaming options among US internet users.
- Neither Disney nor Netflix has provided a timeline for launching these free streaming options.
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