Disney Shifts Consumer Products to Entertainment Unit Amid Streaming Growth

Disney reported mixed results for its June quarter, with its streaming business and theme parks divisions performing well. Disney+ and Hulu saw an 11% increase in revenue to $5.53 billion, while operating income in the entertainment segment more than doubled to $712 million. The company's consumer products business accounted for $1.1 billion in revenue, up from last year.

Disney CEO Josh D'Amaro announced that most of its consumer products will be moved out of the Disney Experiences division and into the entertainment unit starting in October 2026. This move is expected to bring the monetization of IP through consumer products closer to the studios that create it, and make the entertainment segment more comparable to peer reporting methodologies.

The company also highlighted its use of artificial intelligence (AI) in various areas, including theme park design and guest experience improvement. Disney's AI tool, J.A.R.V.I.S., has been implemented on a large scale in the Parks division, allowing Imagineers instant access to over 70 years of institutional knowledge.