Disney May Be Taking a Page Out of Tubi’s and Pluto TV Playbook: ‘We’re Exploring a Free Product For Consumers,’ Says Josh D'Amaro
Key takeaways
- Disney is considering a free, ad-supported streaming product to expand its reach and drive subscriber growth.
- Disney's entertainment division posted $11.35 billion in revenue, a 6% increase from the same period last year.
- The company's revenue increased 7% year over year to $25.25 billion, narrowly missing analysts' expectations of $25.40 billion.
- Disney's ad revenue growth accelerated in the quarter, driven by the strong performance of its entertainment division.
What happened
Disney CEO Josh D'Amaro hinted at exploring a free, ad-supported streaming product to expand the company's reach and drive top-of-funnel Disney+ subscriber growth.
Why it matters
A free streaming product could help Disney accelerate its ad revenue growth, drive subscriber growth, and expand its audience beyond its traditional subscription model.
Short-term and longer-term
Short-term. Disney's consideration of a free, ad-supported streaming product may help drive subscriber growth beyond its traditional subscription model.
Longer-term. Over the next few months, the question for Disney May Be is whether this changed the longer case, or it is one event.