Disney+ Eyes Free Tier to Challenge YouTube

Disney+ is reportedly considering a free tier to enhance its competitive edge against platforms like YouTube and to encourage viewers to remain engaged with its service. This idea was recently pitched by Disney's chief product and technology officer during a company town hall, signaling a broader effort to attract new customers.

While YouTube holds a significant lead in TV watch-time, with 13.4% according to Nielsen data compared to Disney+'s 9.4% in the summer of 2025, Disney+ is seeking innovative ways to grow. Netflix also continues to expand its subscriber base, reaching over 325 million by the end of 2025.

The escalating cost of streaming subscriptions, including recent price increases by Netflix and Disney+ over the past two years, presents a major challenge. To combat this and capture viewer attention, Disney+ has also introduced "microcontent" and "Verts" (short-form vertical video content), mirroring Netflix's recent forays into similar content formats.