Disney’s streaming business continues to grow, despite theatrical losses

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In its third quarter financial report, released on Wednesday, Disney highlighted that their streaming subscriptions and robust domestic tourism at theme parks continued to grow, overcoming a slight dip in their box office earnings from films.

For the three-month span ending June 28th, the Burbank-based media and entertainment behemoth announced revenues of approximately $23.7 billion, marking a 2% increase compared to the same timeframe in the preceding year. Their pre-tax earnings amounted to $3.2 billion, representing a 4% rise from the same period last year. The earnings per share climbed to $2.92, up from $1.43 in the previous year.

Bob Iger, Disney’s CEO, expressed satisfaction with our impressive creative achievements and strong financial growth. Looking forward, we have grand ambitions for every aspect of our company, and we can’t wait to continue expanding and shaping Disney’s future.

Hollywood Inc.

Over time, Pixar has gained recognition for creating unique animated films like ‘Toy Story,’ ‘Finding Nemo,’ and ‘Up.’ However, more recently, their follow-ups have become the primary sources of revenue.

In my role as a follower, I’d like to share some financial updates about our entertainment division. Last year, it generated approximately $10.7 billion in revenue, marking a 1% increase compared to the previous year. However, when it comes to operating income, we saw a decrease of 15%, totaling around $1 billion. This drop can be attributed mainly to lower earnings from content sales and licensing, such as theatrical distribution, and our linear television business.

Disney’s content sales and licensing division earned approximately $2.3 billion in revenue this quarter, marking a 7% increase from last year. However, the division reported an operating loss of $21 million. This loss is primarily due to lower earnings from theatrical distribution during this year’s third quarter. The films responsible for this dip were “Elio,” an original Disney and Pixar animated movie that underperformed at the box office, and Marvel Studios’ “Thunderbolts,” which was critically acclaimed but had a modest commercial reception.

The financial figures for the live-action version of “Lilo & Stitch” only accounted for a portion of its overall success at the worldwide box office, as it eventually earned $1 billion in revenue. Moreover, these earnings were somewhat diminished due to being measured against the impressive box office performance of last year’s “Inside Out 2.”

Disney’s television channels like ABC and Disney Channel experienced a drop in revenue, earning approximately $2.3 billion this year, which is 15% less than last year. Their operating income also decreased by 28%, amounting to $697 million. A portion of this decline can be attributed to lower international earnings resulting from the merger with Star India.

In my humble opinion as a movie enthusiast, Disney’s streaming sector thrived during the third quarter, reporting an impressive 6% surge in earnings, reaching a staggering $6.2 billion. Remarkably, this financial triumph was accompanied by an operating income of $346 million, a significant improvement from the loss of $19 million seen in the same period last year.

The company now has 183 million Disney+ and Hulu subscriptions.

Despite apprehensions about a decrease in foreign tourism to the U.S. due to trade disputes, Disney’s theme parks still managed to generate increased revenues. Specifically, the division responsible for experiences such as the Disney theme parks, cruise line, and Aulani resort and spa in Hawaii, recorded a revenue of $9.1 billion, marking an 8% increase compared to the preceding year. Additionally, their operating income grew by 13%, amounting to $2.5 billion.

As a die-hard Disney fan, I’m thrilled to share some exciting news! During the recent third quarter, our visits not only increased but so did the spending at the parks. To put it into perspective, Disney’s domestic parks and experiences saw a whopping 22% jump in operating income, reaching an impressive $1.7 billion!

Disney’s sports division, comprising ESPN among others, generated a revenue of $4.3 billion, marking a 5% decrease. This decline is attributed to increased expenses for broadcasting and producing NBA and college sports events, as well as the absence of NHL Stanley Cup Finals rights, which Disney acquires every other year. On a positive note, operating income climbed by 29%, reaching $1 billion compared to last year.

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2025-08-06 14:01