Disney Sees Revenue Surge Across Sports and Streaming Segments

Disney's sports segment, primarily composed of ESPN, saw a 4% revenue increase to $4.5B in Q3, driven by subscription and affiliate fees as well as advertising.

The company's overall revenue rose 7% year over year to $25.25B, surpassing Wall Street expectations for earnings but slightly missing estimates for revenue.

While sports rights fees have become a significant cost for media companies like Disney, the company noted soaring TV ratings from the NBA and NHL postseasons on both ABC and ESPN.

The entertainment streaming business, primarily made up of Disney+ and Hulu, posted gains with an 11% increase in revenue to $5.53B, fueled by an increase in streaming customers and price hikes as well as advertising revenue.