Disney is “exploring a free product” for streaming customers, CEO Josh D’Amaro confirmed in a call with investors today.
D’Amaro, who succeeded Bob Iger as Disney’s chief in March, said that a free Disney-owned streaming service would help Disney reach more “price-sensitive” customers, which is a “strategic priority” for Disney, according to a transcript of the call.
A free streaming service would also generate more ad revenue, which has become increasingly important for streaming services challenged by plateauing subscriber numbers, subscriber churn, and competition from cheaper and free rivals.
“Unlike a lot of our AVOD [advertising video on demand] competitors, we’re fairly well-sold, meaning more inventory would actually help us accelerate our ad revenue growth,” D’Amaro said.
A free streaming product might also generate more interest in Disney+ subscriptions, the executive added.
