Disney+ has raised its prices twice in the past eighteen months. Now, according to Business Insider, the company is internally exploring the opposite move — a completely free, ad-supported tier with no subscription required. The source of the discussion: a company town hall on July 9, where Disney's Chief Product and Technology Officer Adam Smith raised the possibility with employees.
Summary
- Disney+ free tier under internal discussion: Adam Smith mentioned enabling free-tier content during a July 9 employee town hall. No timeline, no confirmed scope.
- YouTube is the explicit competitor driving this: Free streaming services — led by YouTube, Tubi, and Pluto TV — now account for 18.7% of US television watch time, up from 12.7% two years ago.
- Still "exploratory": Sources describe the discussions as early-stage. Disney has not confirmed plans publicly.
- Adam Smith joined Disney from Google: He spent 20 years at Google and YouTube before joining Disney as CPTO — meaning the person raising this idea knows exactly how YouTube's free model works from the inside.
- Disney already offers content on Tubi, YouTube, and ITVX: A free Disney+ tier would formalize something the company is already doing partially.
Why YouTube Is Winning
The numbers are hard to argue with. Free streaming services — not ad-supported subscriptions, but completely free platforms — accounted for 18.7% of all US television watch time in April 2026. That's up from 16.8% the year before, and 12.7% the year before that. The trajectory is consistent and accelerating. As streaming prices rise, viewers are migrating toward zero-cost options. Disney is watching that share grow and recognizing that younger viewers especially aren't acquiring the habit of paying for streaming services — because they don't have to.
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Adam Smith spent two decades at Google and YouTube before becoming Disney's CPTO. The fact that it's him raising this idea publicly — even internally — is the signal. He's not theorizing about a business he doesn't understand. He's applying a model he helped build.
What a Free Tier Might Actually Look Like
Nobody at Disney has specified what would be free. But the most likely version, based on how Apple TV+ and Paramount+ approach partial free access, would be a limited selection of older content — classic Disney films, older seasons of shows — with heavier ad loads. FAST-style channels built around themes (Disney classics, Star Wars shorts, National Geographic) are also a natural fit, similar to what Disney already does on Tubi and ITVX.
What it almost certainly won't include: new theatrical releases, current Disney+ originals, or anything that's actively driving subscriptions right now.
What It Means for Subscribers
If you're paying for Disney+ today, a free tier doesn't directly affect your plan. The ad-supported Disney+ subscription currently costs $9.99/month standalone, with a Hulu bundle at $13/month. A free tier below that would create a new entry point, not replace an existing one.
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