'Lilo & Stitch'

Source: Disney

‘Lilo & Stitch’

The Disney+ streaming service increased its global subscriber count to 131.6m in the latest quarter, driving a 39% increase in direct-to-consumer operating income, Disney has reported. 

The entertainment giant’s content sales/licensing activities produced a $52m loss in the quarter, however, due to weaker theatrical results compared to the previous year’s last quarter, when Inside Out 2 and Deadpool & Wolverine helped produce a $316m operating income. 

On a call to discuss the company’s fourth quarter 2025 performance with analysts, Disney CEO Bob Iger was optimistic about theatrical prospects going forward. He said the company’s slate for the rest of its fiscal 2026, which includes Star Wars: The Mandalorian & Grogu, Toy Story 5 and the live action Moana, is “about as strong as it’s been in a while, maybe stronger than it’s been in a while.” 

“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,” Iger added. 

Asked about brewing merger and acquisitions activity among the Hollywood studios, Disney senior vice president and chief financial officer Hugh Johnston said: “We like the hand that we have right now, so I wouldn’t expect us to participate in making any significant moves.” 

In prepared commentary on the results for the three months to September 27, Disney management said it expected to invest $24bn in content for its entertainment and sports sectors in fiscal 2026, an increase of $1bn on fiscal 2025. 

With the streaming launch of the live action Lilo & Stitch providing a boost, Disney+ gained 2.5m subscribers in international markets, to reach a 72.4m count. In the US and Canada the service added 1.5m subscribers, to reach 59.3m. 

Overall, Disney’s fourth quarter revenues of $22.5bn were comparable with those for the fourth quarter of fiscal 2024. For the full year, revenues increased 3% to $94.4bn. 

Total segment operating income was down 5% to $3.48bn, and the company’s entertainment segment saw operating income drop 35% to $691m.

 

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