Disney explores free ad-supported streaming, Super Bowl ads sold out

Walt Disney Co. is exploring a free, ad-supported streaming service and has sold out all advertising spots for the Super Bowl in February, executives said on August 5, 2026.

Chief Executive Officer Josh D’Amaro said the potential free tier would target price-sensitive consumers and advance the company’s priority of broadening its reach. Disney has more ad inventory than many competitors, he noted, which could accelerate advertising revenue growth and draw new subscribers to its Disney+ platform. He stopped short of formally announcing the product.

Free, ad-supported services like Fox Corp.’s Tubi, Paramount Skydance’s Pluto TV and Roku’s The Roku Channel have gained viewers as streaming costs have climbed. Cheaper ad-supported plans from Netflix and Disney+ have become crucial for attracting customers and improving profitability, while advertising for live sports and streaming remains robust.

For the Super Bowl, 30-second spots have reportedly sold for $9 million. Chief Financial Officer Hugh Johnston said the company was pleased with commitments from its Upfront negotiations, noting volume commitments rose by double digits from a year earlier. Marquee events including the College Football National Championship, the Grammys and the Oscars also helped drive ad sales, he said.

Johnston characterized the sports ad market as healthy but acknowledged that streaming is competitive due to growing supply, which has created pricing pressure. Disney reported on August 5, 2026 that lower ad rates weighed on revenue in its overall entertainment unit.

The exploration follows a Business Insider report that Disney was considering a free offering. A free tier could help Disney capture a larger share of the ad-supported streaming market as it contends with growing ad supply and price pressure.