Is Disney Preparing to Create a Free Ad-Supported Streaming Service?
Earlier this week, the Mouse House announced the addition of more than 20 free streaming channels to the ABC app.
Despite the fact that the streaming arm of the company isn’t currently profitable, Disney has the resources to do essentially whatever it wants when it comes to making its shows and movies available to viewers. The company doesn’t have a traditional free ad-supported streaming service as of now, but that could be changing. Earlier this week, the company announced it was adding 20+ free ad-supported TV (FAST) channels to the ABC app. With multiple changes happening around Disney’s streaming front, the House of Mouse just might be gearing up to officially enter the world of free streaming.
- New FAST channels on the ABC app include ESPN8: The Ocho, which launched as a free channel a few days before Christmas.
- Disney does not currently have a free streaming service to compete with Pluto TV, Tubi, and other free streaming platforms.
- Free channels bring in easy ad revenues, and a company like Disney which is laser-focused on streaming profits would benefit greatly from a free streamer.
Which Free Channels Are Available on ABC App?
The ABC app has long had free content available to stream, and the company has been adding more throughout the course of the year, but often that content was reserved for pay-TV subscribers who could sign in using TVEverywhere credentials, or new episodes of ABC series would only be available for a limited time. But on the day after Christmas, Disney’s digital media manager for content programming Jim Donnelly posted a message outlining the new free streaming options on the ABC app.
“How would you like instant access to 24/7 streaming channels with great shows, movies and specials that are ALWAYS ON?” Donnelly said. “We’re talking all-day entertainment with no sign-in needed thanks to our growing selection of Unlocked Channels which now includes the all-new ‘20/20’ and ESPN8: The Ocho live streaming channels.”
The app is celebrating what it’s calling “unlocked channels,” meaning that you do not have to be a pay-TV subscriber to access them. Like more traditional FAST channels, ABC’s unlocked channels are linear and available around the clock. One highlight of the new additions to the ABC app is ESPN8: The Ocho. ESPN8 became the first ESPN FAST channel ever which offers niche sports like kickball, wiffleball, and even more unique contests. The ESPN8 FAST channel first launched the week before Christmas, and is available to stream 24 hours every day.
What are all of the unlocked FAST channels available on the ABC app?**
- 20/20
- ABC NEWS LIVE
- CESAR MILAN: BETTER HUMAN BETTER DOG
- ESPN8: THE OCHO
- GENERAL HOSPITAL SPOTLIGHT
- THE INCREDIBLE DR. POL
- LIFE BELOW ZERO
- LOST TREASURES
- PRESS YOUR LUCK
- SUPERNANNY
- TO CATCH A SMUGGLER
- TO TELL THE TRUTH
- TRUE CRIME STORIES
- WICKED TUNA
- ABC BAY AREA
- ABC CENTRAL CALIFORNIA
- ABC CHICAGO
- ABC HOUSTON
- ABC LOS ANGELES
- ABC NEW YORK
- ABC NORTH CAROLINA
- ABC PHILADELPHIA
Is This Just a First Step for Disney?
Disney is one of the only huge media companies with a subscription streaming platform that does not also have a free ad-supported streamer under its corporate roof as well. Fox owns Tubi, Paramount controls Pluto TV, and Amazon has Freevee. Comcast is part owner of Xumo Play, and Warner Bros. Discovery is still planning to launch a free platform previously referred to as WBTV.
Free streaming platforms are cheap to operate, and Disney clearly has a large enough content library to stack a hypothetical FAST platform with as many titles as it wants. Based on its recent financial disclosures, the company could certainly do with a new source of ad revenue; Disney has a goal to make its streaming services profitable this year, but in its last update, Disney’s streaming arm continued to lose millions of dollars per quarter on its services Disney+, Hulu, and ESPN+.
The cash that comes in from a potential free streaming platform should be put to use quickly. It’s trying to bring its two entertainment apps, Disney+ and Hulu, into a single platform, and it also intends to launch a full, streaming-only version of ESPN that won’t require a cable subscription by 2025, which will clearly require a big investment.
FAST platforms become profitable rapidly, so the creation of such a platform by Disney would be highly logical. The addition of 20+ free streaming channels to the ABC app is just a step in that direction, but it’s a meaningful step that could lead to far more if the company sees good results from it.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”