The news: Disney is considering adding a free tier to its Disney+ streaming service as it faces competition from YouTube, Business Insider reports, citing two individuals familiar with the matter.

One individual claimed that Disney’s product and tech chief Adam Smith spoke on offering free-tier content during a town hall on Thursday; Smith did not propose a timeline.

Why it matters: Free, ad-supported streaming TV (FAST) platforms are capturing more of consumers’ TV time, putting pressure on subscription-first services to rethink their value proposition.

• While paid streaming services like Disney+ require subscriptions, YouTube’s core appeal is that it is free and ad-supported. That accessibility has helped YouTube surpass subscription OTT platforms in viewership and time spent.
• The three largest free streamers—YouTube, Tubi, and the Roku Channel—accounted for 18.7% of total watch time on US TVs in April, per Nielsen, up from 16.8% in 2025. YouTube alone accounted for 13.4% of that figure, well above Disney (5%).
• YouTube has steadily taken viewing share from Disney in recent months: In August 2025, YouTube accounted for 13.1% of TV viewing time, compared with Disney’s 9.7%, per Nielsen. That marks a reversal from January 2025, when Disney still held a larger share than YouTube.