Disney Streaming Profit Doubles as Company Restructures Consumer Products Division
Disney's June quarter earnings showed mixed results, but the company's streaming division and theme parks business both performed well. The entertainment segment saw revenue increase by 6% to $11.3 billion, driven in part by the acquisition of a large stake in Fubo last fall.
The Disney+ and Hulu streaming services reported an 11% increase in revenue to $5.53 billion, with operating income more than doubling to $712 million compared to the same period last year. The company's consumer products business accounted for $1.1 billion in revenue this quarter, showing the strongest year-over-year growth in five years.
As part of a restructuring effort, Disney CEO Josh D'Amaro announced that most of the consumer products business will be moved from the Experiences segment to the Entertainment segment starting in Q1 of fiscal 2027. This change is expected to bring the monetization of IP through consumer products closer to the studios that create it.