Disney weighs free, ad-supported streaming, says it has sold out Super Bowl ad spots

During an earnings call with investors on Wednesday, CEO Josh D'Amaro said the company is exploring a free, ad-supported streaming product for consumers.

"We see it as a way to expand our reach to a customer segment that's more price-sensitive, and expanding our reach ... is one of our strategic priorities," D'Amaro said.

He added that unlike many of Disney's ad-supported competitors, the company has more ad inventory that "would actually help us accelerate our ad revenue growth."

"A free offering could help us drive top of funnel Disney+ subscriber growth," D'Amaro said, though he fell short of making any official announcements. Business Insider earlier reported that Disney was considering a free offering.

Free, ad-supported streaming services like Fox Corp.'s Tubi, Paramount Skydance's Pluto TV and Roku's The Roku Channel have been garnering more viewers as the cost of streaming has risen across various services.

Cheaper, ad-supported plans for major streaming players like Netflix and Disney+ have also become increasingly important to attract more customers and boost profitability.

Advertising for live sports and streaming has remained strong, even in a more competitive environment.

Disney also announced Wednesday that it has sold out ad spots for the upcoming Super Bowl, which will air on the company's ABC and ESPN networks in February.