Netflix and Disney are reportedly considering the launch of free, ad-supported streaming tiers, according to a report from TechSpot, as both companies face slowing subscriber growth and mounting competition from free ad-supported television (FAST) services such as Tubi, Pluto TV, and The Roku Channel.
The move, if it materializes, would represent one of the most significant strategic shifts in the streaming industry since the introduction of cheaper, ad-supported subscription tiers several years ago. Rather than charging a reduced monthly fee for a version of their service with commercials, both companies are reportedly weighing an entirely free option supported solely by advertising revenue.
Why the Streaming Giants Are Reconsidering Their Model
The subscription streaming market has matured rapidly since the pandemic-era boom, and growth has slowed as most US households that want a paid service already have one or more. Password-sharing crackdowns, which briefly boosted subscriber numbers for Netflix, have largely run their course, and price increases across the industry have pushed some viewers toward cheaper alternatives.
Free, ad-supported streaming services have quietly become a major force in that shift. Fox-owned Tubi and Paramount’s Pluto TV have both reported tens of millions of monthly active users, drawing viewers who are unwilling to pay for another subscription but still want access to movies and television content, alongside a healthy stream of advertising dollars. Amazon shuttered its own free service, Freevee, in 2025, folding some of its content into Prime Video’s ad tier instead, but the broader FAST category has continued to expand.
For Netflix and Disney, the calculus appears to be shifting from purely maximizing subscription revenue to capturing a larger share of overall viewing time and advertising dollars, even from users who are not willing to pay anything at all.
What a Free Tier Could Look Like
Neither company has confirmed specific details, pricing structures, or a timeline for launch. Industry analysts cited in the TechSpot report suggest any free tier would likely offer a smaller content library than paid subscriptions, potentially featuring older titles, licensed catalog content, and a heavier advertising load, similar to how existing FAST channels operate.
Disney already has experience navigating tiered ad models. Disney+, Hulu, and ESPN+ all offer ad-supported subscription options, and Disney has increasingly leaned on bundling those services together. Netflix, which resisted advertising for years before introducing its ad tier in 2022, has since made ads a growing part of its business, reporting steady increases in ad-tier membership each quarter.
A completely free version would push both companies further into direct competition with FAST platforms and with ad-supported rivals like Peacock and Paramount+, which already offer discounted ad tiers well below their premium pricing.
Industry Context
The consideration comes as advertisers increasingly favor connected TV (CTV) as an alternative to traditional linear television, where audiences continue to erode. A free tier from Netflix or Disney would instantly give advertisers access to a massive, engaged audience without requiring users to pay for access, potentially reshaping how ad dollars are allocated across the streaming landscape.
It would also mark a notable reversal for Netflix in particular. Co-CEO Ted Sarandos and the company’s leadership spent years emphasizing the value of an ad-free, subscription-first experience before eventually launching a cheaper ad tier under pressure from slowing growth. A fully free option would go a step further, effectively acknowledging that the company sees value in capturing viewers who have no interest in paying at all.
Analysts note that streaming services increasingly compete not just with each other, but with free alternatives like YouTube and FAST channels for a finite amount of consumer attention.
What Comes Next
Both Netflix and Disney have declined to comment publicly on specific plans for a free tier, and any launch would likely require significant internal debate over how to protect the value of existing paid subscriptions while still capturing new viewers and ad revenue.
The broader trend, however, points toward a streaming landscape increasingly defined by tiered access: premium ad-free plans, discounted ad-supported plans, and now potentially free, fully ad-supported options sitting alongside dedicated FAST services. As the market consolidates and companies look for new revenue streams beyond subscriber counts, advertising is emerging as one of the few growth levers left to pull.
For consumers, a free tier from two of the industry’s biggest names could mean more legal, no-cost viewing options, though likely with smaller libraries and more frequent commercial breaks than their paid counterparts.
