Disney+ and Netflix consider free subscription tiers to battle rising competition

Neena Mae Rayos, Philippine Canadian Inquirer
August 06, 2026

(Photo Courtesy: Canva Catalogue)

Major streaming giants Disney+ and Netflix are actively exploring the introduction of free, ad-supported tiers to compete with YouTube and expand their viewer bases.

Disney’s Chief Product and Technology Officer spoke of a free tier during an internal town hall, though no specific timeline has been announced.

This potential shift would mark a significant departure from the companies’ current paid Basic and Premium plans, which have seen price hikes in recent years.

Netflix Co-CEO Greg Peters indicated that a free model might succeed in international markets where converting users to paid subscriptions remains difficult. He noted that such a tier is unlikely to launch in the United States, highlighting the company’s strategic focus on regions facing cost and access barriers.

Competitor Paramount+ is also preparing to broaden its free content offerings beyond the limited free episodes currently available on platforms like Apple TV+.

This industry pivot comes as free streaming services surge in popularity, with YouTube, Tubi, and The Roku Channel capturing 18.7% of US TV watch time as of April 2026.

The move toward free tiers demonstrates how streaming leaders are adapting to intense market pressure and evolving viewer demands. For now, the specific details of these potential free tiers remain unclear as the industry continues to reassess its strategies.