Hollywood Giants Explore Free Tiers for Streaming Services
Disney+, Paramount+, and Netflix are reportedly considering free tiers to attract new audiences and increase advertising revenue, in response to YouTube's growing presence. The move aims to expand reach and eventually upsell users on paid subscriptions. Key markets and specifics are still unclear.
Key points
- Disney and Paramount Skydance are exploring free tiers for their subscription services to build audiences and grow advertising revenue.
- Netflix co-CEO Greg Peters suggested a free offering could make sense in some markets, particularly outside the US.
- Disney's Chief Product & Technology Officer Adam Smith reportedly discussed enabling free-tier content during a streaming town hall.
- The effort aims to remove friction introduced by paywalls and expand reach, with the goal of upselling viewers on paid subscriptions.
- YouTube's growing engagement and market share are driving the move towards free tiers among Hollywood giants.
Hollywood giants are shifting their focus towards free tiers for streaming services in response to YouTube's growing presence. Disney+, Paramount+, and Netflix are exploring ways to offer free content to attract new audiences and increase advertising revenue. This move aims to expand reach and eventually upsell users on paid subscriptions.
The effort to introduce free tiers is driven by the success of YouTube, which has been steadily gaining engagement and market share. Netflix co-CEO Greg Peters suggested that a free offering could make sense in some markets, particularly outside the US. Disney's Chief Product & Technology Officer Adam Smith reportedly discussed enabling free-tier content during a streaming town hall.
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. The move towards free tiers is a strategic response to the changing media landscape and the growing influence of YouTube.
Sources
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