Disney weighs free streaming product as CEO Josh D’Amaro leans into strategy

Disney is weighing an unspecified free streaming product, potentially tied to Disney+, as CEO Josh D’Amaro leans further into streaming as a pillar of the company’s growth strategy.

Analysts pressed Mr. D’Amaro about the prospect of free, ad-supported television, or FAST, channels during Disney’s fiscal third-quarter earnings call Wednesday, but the CEO’s answer centered on a broader, unspecified free offering rather than a confirmed slate of channels. Mr. D’Amaro, who took over as CEO in March, said the idea remains under discussion internally with no launch plans finalized.

“Nothing specific to announce today, but definitely something that we’re considering,” Mr. D’Amaro told analysts.

The Disney chief said a free product could help the company reach price-sensitive viewers and expand its advertising business. He noted the company’s streaming ad inventory is “fairly well sold,” and additional free inventory could accelerate ad-revenue growth. Analysts have floated the idea that a free tier could also serve as a funnel toward paid Disney+ subscriptions, though Mr. D’Amaro did not explicitly commit to that outcome on the call.

Mr. D’Amaro described Disney+ as the company’s “digital centerpiece” for fans, and pointed to a broader Disney+ ecosystem — including expanded games, merchandise and personalization features — that the company plans to build out starting in spring 2027. 

Any free offering would differ conceptually from established FAST services like Tubi, Pluto TV and The Roku Channel, which are built around linear, ad-supported channels; Mr. D’Amaro’s comments suggest Disney is looking more at an on-demand product than a traditional channel lineup. A free tier would also echo earlier moves by Peacock and Hulu, which each previously offered limited programming without a paid subscription.

Mr. D’Amaro also fielded questions about recent consolidation in the media industry. Comcast completed the spinoff of its cable networks, including CNBC and USA Network, into the independent Versant Media Group in January, and separately announced plans this year to spin off the remainder of NBCUniversal — including its studio, streaming and theme park operations — into its own company, a deal expected to close in mid-2027. Fox Corp., meanwhile, has a definitive agreement to acquire Roku in a cash-and-stock deal valuing the streaming platform at roughly $22 billion in enterprise value, pending shareholder and regulatory approval and expected to close in the first half of 2027. Mr. D’Amaro was asked how those deals might affect Disney’s own strategy; he said the company evaluates distribution opportunities on their merits and remains focused on owning its direct relationship with consumers.