Streaming services Disney+ and Netflix are considering offering free tiers funded by advertising to attract price-sensitive viewers and boost ad revenues.
Neither company has formally announced a launch date, but both executives have confirmed they are evaluating free options supported by advertisements to broaden their user bases.
Disney Chief Executive Officer Josh D’Amaro confirmed during an earnings presentation on Wednesday that the company is exploring a free product aimed specifically at budget-conscious consumers. He explained that the strategy aims to reach more viewers, expand advertising inventory, and convert free viewers into paying subscribers over time.
D’Amaro said that unlike many of Disney's ad-supported video-on-demand competitors, the platform has sold nearly all of its available advertising space. He added that creating additional ad inventory would help accelerate advertising revenue growth and boost subscriber acquisitions at the top of the sales funnel, though he noted that Disney currently has no concrete launch to announce.
Netflix strategy and expansion risks
Netflix is analyzing a similar free streaming option, though executives remain cautious about the risk of existing paid members downgrading to a zero-cost tier. Co-Chief Executive Officer Greg Peters told Forbes last month that a free offer could make sense in selected markets, but emphasized that the company must carefully evaluate potential revenue cannibalization.
Peters stated that Netflix considers it essential for any free service to be clearly differentiated from paid tiers and introduced only in countries with mature advertising markets. He clarified that while Netflix will continue evaluating free tiers, it has no plans to launch one in the short term.
Price history and subscriber numbers
The consideration of free tiers comes after years of steady price increases across the streaming industry. Disney+ launched in Spain in March 2020 with a single plan priced at 6.99 euros per month. It is now available at that entry price only with advertisements, following a six-month promotional rate of 5.99 euros, while its Premium plan costs 15.99 euros per month.
Netflix debuted in Spain in October 2015 with monthly plans ranging from 7.99 euros to 11.99 euros. Current subscription rates range from 8.99 euros per month for the ad-supported option up to 21.99 euros per month for top-tier access.
Disney+ reported 131.6 million global subscribers at the end of September 2025. Netflix passed 325 million global subscribers by the end of 2025. Official company figures do not provide a comparable breakdown of subscriber numbers for individual markets such as Spain.
Advertising video-on-demand, known as AVOD, allows streaming platforms to monetize non-paying audiences by showing advertisements during playback. As subscription growth slows in mature markets, major entertainment networks and video platforms have increasingly relied on hybrid and ad-funded tiers to maintain revenue growth.
