UPDATE: Disney+ has just announced a significant surge in subscribers, reaching 131.6 million worldwide, fueled by the streaming launch of the live-action adaptation of Lilo & Stitch. This surge comes amid a challenging financial quarter for the entertainment giant, which reported a $52 million loss in its content sales and licensing activities.
During a call with analysts to discuss Disney’s fourth quarter performance for fiscal 2025, CEO Bob Iger expressed optimism about the company’s future theatrical releases. Iger stated, “We feel good about the direction of the studio, both the current slate, the slate coming up and what it looks like in the future.” He highlighted that Disney’s upcoming lineup is “about as strong as it’s been in a while, maybe stronger than it’s been in a while,” which could significantly impact the company’s recovery.
Despite this positive outlook, Disney’s overall financial results reflect a downturn. The company reported fourth-quarter revenues of $22.5 billion, consistent with the previous year but down from $316 million operating income last year. Total segment operating income fell 5% to $3.48 billion, with the entertainment segment experiencing a staggering 35% drop to $691 million.
On the subscriber front, Disney+ gained 2.5 million subscribers in international markets, bringing its total to 72.4 million. In the U.S. and Canada, the platform added 1.5 million subscribers, reaching a total of 59.3 million. This growth underlines the platform’s resilience and potential for future expansion.
Looking ahead, Disney plans to invest $24 billion in content for its entertainment and sports sectors in fiscal 2026, an increase of $1 billion compared to fiscal 2025. This commitment to content production is aimed at solidifying Disney’s position in the competitive streaming market.
When questioned about potential mergers and acquisitions among Hollywood studios, Disney’s Senior Vice President and Chief Financial Officer Hugh Johnston remarked, “We like the hand that we have right now, so I wouldn’t expect us to participate in making any significant moves.” This statement indicates a focus on strengthening the existing business rather than pursuing new partnerships.
As Disney navigates these mixed financial results, the focus remains on upcoming releases and subscriber growth. Industry watchers are eager to see how the company capitalizes on its strong content slate in the coming months.
Stay tuned for more updates as Disney continues to evolve in the competitive entertainment landscape.
