Disney, Paramount Explore Free Streaming Tiers as 19.1% of US TV Viewing Shifts to Free Apps
Updated
Updated · Business Insider · Aug 3
Disney, Paramount Explore Free Streaming Tiers as 19.1% of US TV Viewing Shifts to Free Apps
1 articles · Updated · Business Insider · Aug 3
Summary
Disney and Paramount Skydance are weighing genuinely free, ad-supported tiers for Disney+ and Paramount+ to widen audiences, lift ad sales and convert price-sensitive viewers into paying subscribers.
Nielsen data helps explain the push: YouTube, Tubi and Roku Channel captured 19.1% of US TV viewing in May, up from 17.2% a year earlier, as consumers push back against rising streaming prices.
Paramount+ is testing a planned "free front porch" as a Q3 priority, while Disney has discussed opening select Disney+ titles, older shows or sample episodes to keep viewers inside their apps.
The strategy carries trade-down risk: Netflix said a free tier could make sense in some markets but has no near-term plans, warning any launch would need enough ad scale to offset lost subscription revenue.
Analysts say free tiers could become the next phase of the streaming wars, though a broader rollout could flood the ad market and weaken the premium positioning of paid services.