GoKawiilIn brief: Video-on-demand streaming services continue to raise their prices, and consumers are increasingly frustrated by the trend. So much so, in fact, that two of the industry's largest streaming companies are reportedly considering offering a limited viewing experience at no cost beyond watching advertisements.
In a recent investor call, Disney CEO Josh D'Amaro confirmed that the company is actively exploring a potential free offering for its Disney+ streaming service. D'Amaro, who took over Disney's leadership from Bob Iger earlier this year, said that a free option could provide several benefits, particularly for "price-sensitive" customers who may be unwilling to tolerate the regular price increases streaming companies are now imposing on subscribers.
Since its launch in 2024, Disney+ has raised prices for US viewers several times. The most recent increase came in October 2025, raising ad-supported plans by $2 per month and ad-free plans by $3. D'Amaro said a free offering would allow the company to reach a different customer segment, which has become a top priority for Disney's streaming business.
Unlike other major AVOD (advertising video-on-demand) platforms, Disney+ is already "well-sold" and could quickly accelerate growth in the advertising revenue market. A free option could also help the company attract more paying subscribers. However, Disney is still only exploring the idea and has no specific plans to announce at this time.
D'Amaro's statements highlight the growing pains of the video streaming business, which began as a more affordable alternative to cable companies but is now moving toward a similar model. A free, ad-supported service would bring the industry full circle, some users argue, transforming streaming into what is essentially an IP-based television system hidden behind a login screen.
Even Netflix, which has nearly twice as many subscribers as Disney+ (more than 325 million versus 131.6 million and counting), is facing significant price-hike fatigue and slower customer growth. Netflix's latest price increases came just a few months ago, when the company raised its Ads plan by $1 per month and its ad-free plans by $2 per month.
Netflix co-CEO Greg Peters addressed the free streaming dilemma during an investor call in July. Peters said the company needs to be "thoughtful" about free offerings, as they could eventually cannibalize its more lucrative paid tiers. Netflix is still expected to explore free streaming, but it would first need to develop and scale a strong advertising business across local markets.
For now, Netflix has no immediate plans to announce. However, all streaming giants may eventually face the same challenge, as free services like Pluto TV continue gaining popularity and potentially draw users away from paid platforms.