The streaming market may be entering a new phase. Following years of subscription price increases, Netflix and Disney have begun discussing the possibility of launching completely free, ad-supported viewing tiers.
The change shows how rising subscriber fatigue over price increases and the rapid growth of free ad-supported platforms are prompting leading streaming companies to reassess their long-term business models.
During a recent investor call, Disney CEO Josh D’Amaro confirmed that the company is considering a free tier for Disney+. D’Amaro, who became CEO earlier this year, said the option could appeal to customers who are more sensitive to price after repeated subscription increases.
Since debuting in 2024, Disney+ has rolled out multiple price increases in the U.S. Its latest adjustment in October 2025 added $2 per month to the ad-supported plan and $3 to ad-free subscriptions. According to D’Amaro, a free tier would help the company attract a different group of viewers, making it a major priority for the streaming business.
According to D’Amaro, Disney+ already has strong advertiser demand, giving it an advantage over many ad-supported streaming competitors. The company believes a free tier could increase advertising revenue while encouraging some users to move to paid plans over time. At this stage, though, Disney says the idea is still under review, and no formal plans have been announced.
Netflix, which has more than 325 million subscribers worldwide compared with Disney+’s 131.6 million, is also dealing with slower subscriber growth and growing resistance to higher prices. Just months ago, the company increased the cost of its ad-supported plan by $1 per month and its ad-free plans by $2.
Netflix Co-CEO Greg Peters discussed the possibility of a free streaming tier during a July investor call. He said the company must carefully weigh the impact such a service could have on its paid subscriptions, which remain its primary source of revenue. Peters added that Netflix would need a stronger advertising business in its local markets before considering the idea. At this stage, the company has no plans to launch a free service.
Streaming was supposed to be the cheaper, simpler replacement for cable. Now, with rising prices and more ads, many people feel it’s starting to look a lot like the system it replaced. Some even say a free, ad-supported model would basically turn streaming into cable TV over the internet with a username and password.
The growing success of free streaming services such as Pluto TV is adding to the pressure on subscription-based platforms. As more viewers choose no-cost alternatives, major streaming companies may have little choice but to reconsider their business models in response to slowing subscriber growth and increasing resistance to higher monthly fees.
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