Disney+ Surges to 131.6 Million Subscribers Despite Financial Losses

Disney+ has reached a significant milestone with a total of 131.6 million subscribers, boosted by the recent streaming launch of the live-action adaptation of Lilo & Stitch. Despite this growth in subscriber numbers, the entertainment giant reported a $52 million loss in its content sales and licensing activities for the fourth quarter of fiscal 2025, largely due to weaker theatrical performances compared to the same period last year.

During a conference call with analysts, Disney’s CEO Bob Iger expressed optimism regarding the company’s theatrical prospects. He stated, “Our slate for the rest of fiscal 2026 is about as strong as it’s been in a while, maybe stronger than it’s been in a while.” Iger highlighted his confidence in both the current and future lineup of films, suggesting a positive outlook for the studio’s performance.

In the same call, Hugh Johnston, Disney’s senior vice president and chief financial officer, addressed the potential for mergers and acquisitions in Hollywood. He remarked, “We like the hand that we have right now, so I wouldn’t expect us to participate in making any significant moves.” This statement indicates a strategic focus on consolidating existing strengths rather than pursuing new acquisitions.

Financial Overview and Future Investments

Disney management revealed that the company plans to invest $24 billion in content for its entertainment and sports sectors in fiscal 2026, which marks an increase of $1 billion from fiscal 2025. Despite the losses in content sales, Disney’s overall revenues for the fourth quarter remained stable at $22.5 billion, comparable to the same quarter in fiscal 2024. For the entire fiscal year, revenues rose by 3% to $94.4 billion.

However, the operating income for Disney’s total segments fell by 5% to $3.48 billion, while the entertainment segment experienced a more significant decline of 35%, arriving at $691 million. These figures highlight the challenges the company continues to face in a competitive marketplace.

The surge in Disney+ subscribers comprised 2.5 million new users from international markets, bringing the total to 72.4 million. In the United States and Canada, the service added 1.5 million subscribers, reaching a total of 59.3 million in those regions. This growth in subscriber count reflects the ongoing demand for streaming content, particularly as Disney continues to expand its offerings.

As Disney navigates both growth in streaming services and challenges in theatrical revenue, the company remains focused on enhancing its content pipeline to attract and retain subscribers. With a solid strategic approach, Disney aims to reinforce its position in the rapidly evolving entertainment landscape.