The Disney Plus App Is Getting TikToks. Is a Free Plan Next?

Disney CEO Joshua D’Amaro disclosed on Wednesday that the entertainment behemoth is contemplating the introduction of a free version of Disney Plus as a strategy to draw in more users to the streaming platform. During the company’s 2026 third-quarter earnings call, D’Amaro stated, “We’re exploring a free offering that could help us drive top-of-funnel Disney Plus subscriber growth.”

In addition to this revelation, Disney and TikTok announced on the same day that they had agreed to incorporate Disney-themed TikToks, created by selected creators, into the Disney Plus app. These videos will be featured in the app’s new Verts section and will be launched in a pilot program in the United States later this year. This disclosure seems to corroborate a report from Business Insider published last month, which had suggested that Disney might introduce a free tier to maintain its position in the ever-evolving streaming market.

In June, Fox announced its acquisition of Roku for $22 billion, and the ongoing sale of Warner Bros. Discover to Paramount SkyDance has raised concerns among entertainment industry workers regarding job losses, reduced project production, and potential impacts on editorial freedom. However, David Ellison, CEO of Paramount SkyDance, dismissed these worries.

In response, D’Amaro painted a more optimistic picture, stating, “A more consolidated industry is really a better investment backdrop,” and alluding to Disney’s history of successful partnerships and streaming initiatives. Disney currently operates Disney Plus, Hulu, and ESPN, and has agreements with Paramount-owned HBO Max, which contributed to an 11% increase in streaming-related earnings in the third quarter, totaling $5.53 billion.

However, free live TV streamers, such as Fubo, are attracting viewers who prefer not to spend much on individual live events. Consequently, a free tier for Disney Plus could prove beneficial. Mike Proulx, research director at Forrester, commented, “It’s become clear Disney Plus is no longer just a streaming service, and perhaps that’s a good thing.”

He added, “Streaming has a customer relationship problem, which Disney is trying to address by making its streaming service the centerpiece of its digital offerings.” Proulx explained, “Movies and series are the foundation, but live sports, games, merchandise, creator content, and future perks give consumers more reasons to stay engaged with Disney.”

Despite recent box office flops like Star Wars: The Mandalorian and Grogu, and the live-action Moana, D’Amaro maintained that these movies had boosted merchandise sales and visits to Disney attractions. He emphasized that Disney considers the overall value of its intellectual properties (IP), rather than focusing solely on the theatrical window.

For instance, the latest Toy Story film was a theatrical success and also supported Disney’s other businesses. "The nature of the film industry is such that it is more of a portfolio game," D’Amaro stated, "The theatrical window, in a lot of ways, it’s just one data point. And the real value of that IP is the cumulative benefit of decades-long storytelling and our ability to take that IP and play it into the entirety of the Disney flywheel."