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CEO Josh D'Amaro said a free offering could expand Disney's reach to price-sensitive consumers and funnel subscribers to Disney+
Disney $DIS said Wednesday it is exploring a free, ad-supported streaming product and has sold out advertising slots for the upcoming Super Bowl, which will air on its ABC and ESPN networks in February, according to CNBC.
Chief Executive Officer Josh D'Amaro, speaking on the company's quarterly earnings call, said Disney is considering launching free, ad-supported streaming channels as a way to reach price-sensitive consumers and drive subscribers toward Disney+ and Hulu. "Nothing specific to announce today, but definitely something that we're considering," D'Amaro said.
D'Amaro outlined three goals for a potential free offering: expanding reach to consumers who are sensitive to subscription costs, generating additional ad inventory to accelerate ad revenue growth, and funneling new subscribers into Disney's paid streaming services. He noted that unlike many ad-supported competitors, Disney is "fairly well sold," meaning more inventory would benefit the company's ad business.
