Disney eyes free ad supported streaming channels to widen audience reach

MUMBAI: Looks like Disney wants to make “once upon a time” free again. The entertainment giant is weighing a move into free, ad-supported streaming, betting that giving viewers a no-cost ticket could pay dividends through advertising and future subscriptions.

The Walt Disney Company is exploring the launch of a FAST (Free Ad-Supported Television) service as it looks to expand its streaming audience, strengthen advertising revenues and create a new entry point into the Disney+ ecosystem.

Speaking during the company’s latest earnings call, Chief Executive Officer Josh D’Amaro said Disney is evaluating a free offering aimed at reaching consumers who are more price-sensitive, describing audience expansion as one of the company’s key strategic priorities.

Unlike many ad-supported video-on-demand rivals, Disney believes it has another advantage — demand from advertisers already exceeds available inventory. D’Amaro said a FAST service would create additional advertising space, enabling the company to accelerate revenue growth while also acting as a funnel to convert free viewers into paying Disney+ subscribers.

While the company stopped short of announcing a formal launch, D’Amaro said the proposal remains under active consideration.

The move reflects a broader shift across the streaming industry, where free, advertising-supported platforms are rapidly gaining traction as media companies search for new revenue streams beyond subscriptions.

The momentum has intensified in recent months. Fox recently announced plans to acquire Roku, including The Roku Channel, to strengthen its streaming business, while Netflix has also acknowledged that a free offering could make sense in selected markets, although it has no immediate launch plans.

FAST platforms are steadily capturing viewers’ attention in the United States. In May, Tubi accounted for 2.3 per cent of total television viewing, while The Roku Channel reached 3.1 per cent, underscoring growing consumer appetite for free streaming supported by advertising.

Disney no longer discloses subscriber numbers every quarter. However, as of late 2025, Disney+ had 132 million subscribers, up by 3.8 million from the previous quarter, while the combined Disney+ and Hulu subscriber base reached 196 million, adding 12.4 million subscribers.

The company also reported that its subscription video-on-demand (SVOD) entertainment business, covering Disney+ and Hulu excluding ESPN, generated $712 million (around Rs 6,190 crore) in revenue during the latest quarter, marking a significant increase from a year earlier.

Alongside the proposed FAST offering, Disney revealed plans to transform Disney+ into a broader membership ecosystem beginning early next year. The company also recently unveiled a partnership with TikTok that will bring selected creator-generated Disney content onto the streaming platform, signalling a wider strategy to deepen engagement beyond traditional film and television.

As streaming evolves beyond the subscription model, Disney appears to be betting that sometimes the best way to grow a paid audience is to let viewers in for free first.