With Toy Story 5 making big bucks at the box office and The Devil Wears Prada 2 crushing the streaming numbers, Disney is poised to keep the momentum going. The media giant has been cutting hundreds of jobs in addition to backing out of its $1 billion investment in OpenAI. Disney has also recently sold their share in A&E for $1.2 billion. News is also making the rounds of a TikTok partnership with Disney, showing that the company is looking at all angles to expand their reach and grow audience numbers. After weeks of speculation, Deadline reports that Disney CEO Josh D’Amaro confirms that the company is looking into a free option for Disney+ consumers. Speaking on a quarterly earnings call, D’Amaro says that the option “will allow us to accomplish several goals and hopefully do that efficiently.” Looking at a possible free tier of Disney+ or something similar, D’Amaro says that “we see it as a way to expand our reach to a customer segment that’s more price sensitive.” What this usually means is giving away some content while making money on advertising. D’Amaro spoke specifically about ad revenue while adding a free tier would entice new subscribers.
Disney Pixar LogoPixar Animation Studios
The free tier consideration comes as FAST (free ad-supported streaming TV) platforms have shown growth in recent years. Free streaming apps like Pluto TV and Tubi are installed in nearly 80% of households that also pay for subscriptions like Disney+, HBO Max, or Paramount+. There are clear benefits to putting films and shows on these FAST platforms as it will get significantly more brand exposure. Of course, if you detest commercial interruptions, it can have the opposite effect. Disney CFO Hugh Johnston notes that “We plan to grow content spending from the current levels over time,” noting that international growth is also a key goal. Disney is set to spend about $24 billion on content in 2026, which is a small increase from 2025. Johnston continued:
“We’re highly focused on operating with speed and agility, and improving productivity and efficiency across the company, so we can invest in accelerating growth. I will tell you that this work is ongoing as we look at meaningful reductions to cost, including labor and SG&A, and we’ll update you on progress as we move forward.”
The good news here is that Disney plans on expanding their inventory by producing more shows and films while expanding partnerships. As Netflix has dabbled with hosting podcasts and other creators, Disney’s mix of TikTok, FAST-inspired options, and more content should be a good sign for fans of Disney franchises.
Publisher: Source link
