The Walt Disney Company closed its fiscal year 2025 with significant gains in its streaming business. Revenue from Disney+, Hulu, and other direct-to-consumer (DTC) platforms rose 8% year over year to $6.2 billion for the July-September quarter, while operating income increased 39% to $352 million.

CEO Robert Iger noted the turnaround, highlighting that DTC operations had faced a $4 billion annual operating loss just three years ago. By the end of fiscal Q4 on September 27, Disney had nearly 196 million Disney+ and Hulu subscribers, an increase of 12.4 million for the quarter. This growth came despite a third price increase in three years for Disney Bundle services and the suspension of late-night host Jimmy Kimmel in September.

Hulu added 8.6 million subscribers during the quarter, likely boosted by its inclusion in Charter Communications’ Spectrum Select pay TV bundle, which began offering basic ad-supported Hulu at no extra cost to subscribers last summer.

Disney also reported positive results from the summer launch of its new DTC ESPN app, noting increases in subscribers, engagement, and ad sales, though specific figures were not disclosed. The company did share that about 80% of ESPN app signups are through a bundle with Disney+ and Hulu.

Looking ahead, Disney plans to spend around $24 billion on licensing and producing programming in fiscal 2026, up about $1 billion from the previous year. This increase is mainly due to higher sports licensing costs, including the NBA’s new $76 billion national TV deal starting with the upcoming basketball season.

One ongoing challenge is Disney’s unresolved program licensing dispute with YouTube TV, which has kept ABC, ESPN, and about 20 other Disney channels off the platform for two weeks. Iger stated, “We care deeply about the consumer, and our priority has always been to remain on their service,” emphasizing that Disney’s proposed deal matches or exceeds agreements with other major distributors.

Traditional television continues to impact Disney’s financial results. Fiscal Q4 revenue was $22.46 billion, flat year over year and below analyst expectations. Revenue from linear networks fell 16% compared to the previous year, and overall entertainment division revenue, which includes both streaming and linear, dropped 6% to $10.21 billion. This decline is mainly due to reduced cable and broadcast TV usage and lower advertising sales. Disney’s stock was down more than 9% as of Friday morning.

Linear advertising also suffered from comparisons to the previous year, which saw higher political ad spending ahead of the U.S. Presidential election, resulting in a $40 million negative impact for 2025.

• The live-action Lilo & Stitch film achieved 14.3 million views in its first five days on Disney+, ranking as the platform’s fifth-best live-action debut.
• ABC’s Dancing With the Stars increased its audience for six consecutive weeks after its 37th season premiere on September 16, a first according to Nielsen.
• Disney surpassed $4 billion in global box office revenue for the fourth year in a row.
• The Experiences division, which includes theme parks and cruises, saw Q4 sales rise 6% to $8.76 billion. Disney launched two new luxury cruise ships and plans to build five more, as well as a new theme park in Abu Dhabi. Advanced bookings for parks are up 3% in Q1, according to CFO Hugh Johnston.

Disney is also developing the Disney+ app into a “super app” that will allow users to purchase cruise and theme park tickets, aiming to centralize all Disney services. The company continues to seek third-party bundling partners, which help reduce customer cancellations. Disney already bundles HBO Max with Disney+ and Hulu through a partnership with Warner Bros. Discovery, and recently teamed with Fox to package ESPN DTC with the new Fox One.

As of October, Hulu operates as a section within the Disney+ app, featuring Disney’s general adult entertainment programming. Despite industry merger activity, Disney’s CFO stated the company is not pursuing any mergers or acquisitions at this time, saying, “I feel like we already have a great portfolio, and we don’t need to do anything.”

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