After years of relentless price hikes, Disney+ and Netflix are now exploring free or low-cost tiers to win back subscribers exhausted by rising subscription costs. Disney CEO Josh D’Amaro has confirmed the company is weighing a no-paywall offering — a strategic pivot that could reshape the streaming landscape.
🔑 Key takeaways
- Disney+ officially confirms it is exploring a free product aimed at price-sensitive consumers
- Netflix raised its ad-free Standard plan to $20/month and its Premium plan to $27/month
- Netflix’s Premium tier is now the most expensive standalone streaming subscription in the US market
- FAST (Free Ad-Supported Streaming Television) services are gaining traction among American households
- Disney leans on its Disney+/Hulu Duo bundle at $20/month to stay competitive against price increases
Disney confirms it is exploring a free product
During a recent earnings call, Disney CEO Josh D’Amaro officially confirmed a rumor that had been circulating for weeks: the company is exploring the launch of a free product on its Disney+ streaming platform. The announcement marks a strategic turning point for the entertainment giant, which is grappling with subscriber growth saturation and mounting competition from lower-priced rivals.
D’Amaro, who succeeded Bob Iger at the helm of Disney in March, explained that such a service would help target more “price-sensitive” consumers — a segment he described as a “strategic priority” for the company. According to the call transcript, a free offering would also generate additional advertising revenue, a lever that has become critical in the face of stalled subscriptions and elevated churn rates.
“Unlike a lot of our competitors in ad-supported video on demand, we are pretty well sold out, which means more advertising inventory would actually help accelerate our advertising revenue growth.”
Josh D’Amaro, CEO of Disney
The executive added that such an offering could help “drive top-of-funnel Disney+ subscriber growth” — marketing jargon for the first stage of customer acquisition. He tempered expectations, however: “Nothing specific to announce today, but it’s definitely something we’re considering.”
Prior signals and Disney’s internal discussions
Disney executives have not detailed what the project would actually look like. However, a Business Insider report published the previous month stated that the company was discussing the possibility of making certain content accessible on Disney+ without a paywall, according to two sources familiar with the matter.
The report indicated that Adam Smith, head of product and technology at Disney, had raised the topic of free content during an internal meeting with streaming employees, without providing a timeline or specifics on the scope of the initiative. A free tier would allow Disney+ to stand out from other subscription video platforms like Netflix and HBO Max, amid growing consumer frustration over recurring price increases.
Netflix raises its prices again
Netflix is no slouch when it comes to price hikes. The company announced that the cost of its ad-free Standard plan is rising to $20 per month in the United States. The change, effective immediately for new customers, was announced on March 26, 2026, and will apply to existing subscribers at their next billing cycle.
The cheapest tier, which includes ads, now costs $9 per month, while the Premium plan has climbed to $27 per month. This pricing puts Netflix’s ad-supported plan on par with Paramount+’s ad-supported base plan, also priced at $9 per month. Netflix’s Premium has become the most expensive standalone streaming subscription in the US market, surpassing HBO Max’s Premium at $23 per month. This increase comes just over a year after the previous one, implemented on January 21, 2025.
| Platform | Base plan | Standard plan | Premium plan |
|---|---|---|---|
| Netflix | $9/month (with ads) | $20/month (ad-free) | $27/month |
| Disney+/Hulu (Duo Bundle) | — | $20/month (ad-free) | — |
| HBO Max | — | — | $23/month |
| Paramount+ | $9/month (with ads) | — | — |
The Disney+/Hulu bundle in context
To stay competitive against Netflix’s price hikes, Disney is leaning on its bundled Disney+/Hulu offering, officially dubbed the Disney Bundle Duo. The bundle is priced at $20 per month in its ad-free version — exactly the same price as Netflix’s ad-free Standard plan. Both services saw a price increase in October 2025.
The bundle combines Hulu’s catalog, which includes Emmy-winning series such as Shōgun and The Bear, with Disney+’s family-friendly content spanning Pixar, Marvel, and Star Wars. This pricing and editorial positioning lets Disney offer a high-perceived-value package while keeping its price aligned with that of its primary competitor.
The rise of FAST services
Disney’s moves and Netflix’s deliberations fit into a broader trend in the streaming market. Recent surveys show growing adoption of FAST services (Free Ad-Supported Streaming Television) among American households. These services offer a content catalog funded entirely by advertising, with no subscription required.
Netflix itself is cautiously weighing a free tier, while stressing the need to avoid cannibalizing its paid subscriptions and to have a solid advertising base to support such a business model. The challenge is significant: monetizing enough advertising volume without eroding the value of existing paid plans.
“Sign me up. These apps are just bad enough to keep me on the basic plans only.”
User on Threads
This comment, posted on the Threads social network, sums up the sentiment of a growing share of consumers: weary of repeated price hikes, they are looking to cut their streaming spend while maintaining access to a minimal catalog. For Disney and Netflix, the challenge is to turn this dissatisfaction into a commercial opportunity — either through a free offering or by overhauling their pricing grids.
Conclusion: a streaming market at a crossroads
Disney’s exploration of a free product and Netflix’s successive price hikes illustrate a pivotal period for the streaming market. After years of breakneck growth, platforms are facing a saturation phenomenon, where each new subscriber costs more to acquire and where existing customers are looking to optimize their spending. FAST services, bundled offerings, and ad-supported tiers emerge as the three most credible levers to reignite growth.
In the short term, consumers can expect intensified pricing competition, with more aggressive promotions and potentially new free offerings. In the medium term, the question remains open: will Disney succeed in monetizing a free offering without cannibalizing its paid subscribers? Will Netflix resist the pressure from free services, or will it eventually launch its own subscription-free tier? The coming quarters will reveal if subscription streaming can survive the era of subscription fatigue.
Sources
- Ars Technica – After jacking up prices, Disney+ and Netflix consider offering free alternatives
- Business Insider – Best Netflix streaming alternatives
- Threads – Post by @ngorby
This article is published for informational and educational purposes only. It does not constitute investment advice in any form. Do your own research (DYOR) before making any decision.
