Disney to spend $26bn on content in 2026 as subs rise

Disney has posted better than expected Q4 streamer subs numbers over the three months to September, and revealed it will increase content spend in 2026 to over $25bn.

Revenue at Disney+ and Hulu bumped up 8% to $6.25bn, while operating income soared 39% to touch $352m.

The Mouse House, which has said it will not reveal subs numbers in future, secured 3.8 million more Disney+ customers across the quarter to take the total to 131.6 million.

International subscribers rose 4% on Q3 to stand at 72.4 million, with a 3% rise in North America to 59.3 million.

Hulu subscribers now stand at just under 65 million, having risen by 8.6 million. The latter was mainly thanks to a bundle deal with US pay-TV operator Charter.

That helped direct-to-consumer operating income hit $352m, up almost $100m on the same time last year, with the relaunch of sports-focused streamer ESPN+ also taking place over the period.

The ABC operator saw linear declines continue, however, with revenue tumbling 7% on last year’s number to hit $1.86bn while operating income slumped 5%.

There were also declines in revenue at its film and TV content sales and licensing unit, which was down 26% to $1.9bn.

The company pointed to the release of film Inside Out 2 in Q4 last year as a factor in the decline, which saw operating income of more than $300m in 2024 become a loss of $52m in 2025.

Disney also said it plans to nudge content spending on entertainment and sports up from $25bn this year to $26bn in 2026, adding that it expects its direct-to-consumer entertainment operating income to hit $375m in Q1 2026.

The firm also wrote down the value of its stake in A+E Global Media by taking a $450m impairment charge in the company, which is co-owned with Hearst. A sale of the Lifetime and A&E Network owner is underway.

Disney chief exec Bob Iger, whose contract is up at the end of next year, said: “This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer businesses.

“Our strategy, coupled with our portfolio of complementary businesses and a strong balance sheet, enables us to continue investing in high-quality offerings for our consumers and increasing our returns to shareholders, and I’m pleased with our many achievements this fiscal year to position Disney for the future.”

During the company’s earnings call, Iger referenced the ongoing carriage dispute with YouTube, which has seen Disney services go dark on the Google-owned platform, telling investors that it is “not looking to break new ground” on a deal and is “working tirelessly” on an agreement.

Disney CFO Hugh Johnston also played down any chance of the company making major M&A moves in its earnings call, distancing itself further from discussions over Warner Bros Discovery.

“We feel like we’ve got a great portfolio and we don’t need to do anything and from that perspective we’ll let that play out,” he said.

“We like the hand that we’ve got now… I wouldn’t expect us to make any significant moves.”

International spend on content will also increase, he added, as the company explores growth opportunities outside of the US although no other detail was given.

Across the company as a whole, revenue stood at $22.46bn for Q4, missing Wall Street expectations of $22.75bn. Adjusted earnings per share were $1.11, beating expectations by six cents.