Hollywood increasingly sees YouTube as its major competition, and per a new report, free tiers from streamers like Disney+ and Paramount+ might be the answer.
Streamers like Disney+, Paramount+, and Netflix exploring free tiers in various ways
James Faris writes at Business Insider:
Hollywood giants Disney and Paramount Skydance are exploring adding free tiers to their subscription services to build audiences, grow advertising revenue, and turn curious newcomers into customers…Netflix co-CEO Greg Peters said in mid-July that “a free offering could make sense in some markets.”
Recently, Disney’s Chief Product & Technology Officer Adam Smith reportedly “spoke about enabling free-tier content during a streaming town hall.”
The effort would aim to remove friction introduced by the Disney+ paywall in a bid to expand reach. Disney could then more easily upsell viewers on a paid subscription when they’re already using the app regularly.
Paramount reportedly has a similar idea: “Paramount’s flagship streamer plans to expand access to movies and shows available to people without a subscription, according to an internal presentation viewed by Business Insider.”
Netflix’s comments about a free offering were specific to markets outside the US. But that could always change depending on how free tiers perform for other streamers.
Each streamer seems motivated in part by YouTube’s ever-growing engagement and market share. Disney+ had previously planned to add YouTube-style user-generated content for free. But the dissolution of Sora and Disney’s OpenAI deal made the future of those plans unclear.
What do you think of streamers launching more free streaming tiers? Let us know in the comments.
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