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Disney considers free, ad-supported streaming to boost profitability

The company said its ad business outlook includes selling out Super Bowl spots, signaling it is leaning on advertising to support streaming economics.

Reported · Written up by our desk · Sectors

Disney is weighing a free, ad-supported streaming option as it looks to improve streaming profitability, CNBC Markets reports. The company’s thinking is that advertising can play a bigger role as streaming economics evolve.

CNBC Earnings also notes Disney has sold out Super Bowl ad spots, a detail the company highlighted as it evaluates how ads could underpin a lower or no subscription cost model.

The shift would mark a change in how Disney packages streaming content, as it tries to balance subscription revenue with ad revenue growth, according to CNBC.

Disney’s review comes amid increasing interest across streaming services in ad tiers and alternative monetization models as businesses work to scale profitability.

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