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Key Takeaways Free streaming options are more popular than ever; Tubi, for example, has 100 million monthly active users.
Disney is hoping to capture a larger audience by offering some of its streaming content for free.
Disney CEO Josh D’Amaro said that there were a few strategic benefits of offering a free streaming option, including “expanding our reach” and growing ad revenue.
Disney is looking into a free, ad-supported streaming service, CEO Josh D’Amaro confirmed during an earnings call this week.
“We’re exploring a free product for consumers, one that will allow us to accomplish several goals and hopefully do that efficiently,” D’Amaro said on the call.
Also on the call, D’Amaro outlined the strategic benefits of offering a free streaming option. He said that first, free streaming would expand the company’s reach by better serving customers who are sensitive to price changes and concerned about affordability.
“Expanding our reach is, as we’ve talked about before, one of our strategic priorities,” D’Amaro told investors.
In addition, Disney would grow its advertising revenue by adding more viewers. A free streaming option could also eventually drive more paying subscribers to Disney+.
“So nothing specific to announce today, but definitely something that we’re considering,” D’Amaro said.
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