Disney is exploring the idea of offering a free version of Disney+ that would be supported by advertisements, according to Business Insider. Adam Smith, who runs product and technology at Disney, brought up the idea during an internal company meeting on Thursday. The Verge confirmed the report the next day.

Disney has not officially announced this or shared any details about what shows and movies would be included, when it might launch, or even if it definitely will.

Why would Disney do this? YouTube has become the main source of entertainment for many people watching on their television. Nielsen, a company that tracks what people watch, has found that Americans are spending more time on YouTube than on traditional streaming services like Disney+. Adam Smith previously worked at YouTube for many years before joining Disney. At YouTube, he worked on the mechanics that keep people watching—how to place ads, how to recommend videos people will want to see, and how to give away content for free while making money from advertisements. Now he is bringing those ideas to Disney.

Disney+ has been doing the opposite: raising prices, cracking down on password sharing, and creating a paid version with ads (which started in December 2022). A completely free tier would work differently. It would be similar to services like Pluto TV, Tubi, and The Roku Channel, which offer free shows and movies but include advertisements. These services typically offer older or library content rather than brand-new releases.

If Disney does this, the reasoning would probably be to bring in new people. A free version could attract viewers who are currently watching YouTube instead and who currently bring no money or information to Disney. Disney could fill the free tier with older shows, ESPN content, or older movies to build up an advertising business. Some people using the free version might later pay for a subscription. None of this is certain yet; Disney has not said anything official.

One thing to keep in mind: we only know about this because one person who attended the meeting told reporters about it. That is not the same as Disney making an official announcement or discussing it in an earnings call. Inside companies, executives talk about ideas all the time that never actually become products. Right now, this is just a reported conversation, not a confirmed plan.

Other streaming services have been moving in this direction for a while now. As fewer new people are signing up for subscriptions, services need new ways to make money. Netflix started offering a cheaper version with ads in 2022. Amazon added ads to Prime Video in 2024. HBO Max, Paramount+, and Peacock have all been relying more on advertising. A free tier from Disney would take that approach further.

If Disney does launch a free version, the real questions will be about the details. Will ESPN content be included? Will it include shows from Hulu, which Disney now combines with Disney+? Will it be so good that it makes people less likely to pay for the ad-free version? We cannot answer any of these questions yet.