Disney explores ad-supported free streaming to attract cost-sensitive users while securing record Super Bowl ad sales at $9 million per slot.
Disney is evaluating a free, ad-supported streaming tier to expand its reach among price-sensitive consumers and boost ad revenue. The move aims to funnel users toward paid services like Disney+ and Hulu while capitalizing on strong demand for ad inventory.
The company has already sold out Super Bowl ad slots for ABC and ESPN, with 30-second spots priced at $9 million. CFO Hugh Johnston noted double-digit growth in volume commitments during upfront negotiations, citing high-profile programming as a key driver.
Disney CEO Josh D’Amaro emphasized the potential benefits of a free tier, including increased ad revenue and subscriber conversion. The company remains confident in its ad business, describing itself as “fairly well sold” compared to competitors.