Disney's Streaming Growth Continues, Hulu Live TV Merges with Fubo

TL;DR

**Disney is doubling down on streaming and content, strategically offloading Hulu Live TV to Fubo to streamline its DTC empire and boost profitability.**

AI Summary

The Walt Disney Company (DIS) reported its fiscal year ended September 27, 2025, highlighting its diversified entertainment operations across three segments: Entertainment, Sports, and Experiences. The Entertainment segment, encompassing film, episodic content, and direct-to-consumer services, is a significant revenue driver. Key direct-to-consumer services, Disney+ and Hulu, reported approximately 132 million and 64 million paid subscribers, respectively, as of September 27, 2025. The company's Linear Networks, including ABC, Disney Channels, Freeform, FX, and National Geographic, continue to generate revenue primarily from affiliate fees and advertising, with domestic channels like FX reaching 62 million subscribers. A notable strategic move occurred on October 29, 2025, when Disney combined certain Hulu Live TV assets with FuboTV Inc., resulting in Disney holding a 70% interest in the new combined entity. The company expects to release approximately 20 films in fiscal year 2026, indicating continued investment in content production and distribution. Risks include competitive pressures in content creation and distribution, consumer preferences, and global economic conditions.

Why It Matters

Disney's strategic shift towards streaming, evidenced by 132 million Disney+ subscribers and 64 million Hulu subscribers, is crucial for investors as it indicates the company's ability to adapt to changing media consumption habits and compete with rivals like Netflix and Warner Bros. Discovery. The partial divestiture and combination of Hulu Live TV assets with FuboTV Inc., where Disney retains a 70% interest, streamlines its direct-to-consumer offerings and could improve profitability by offloading some operational complexities while maintaining exposure to the live TV market. This move also impacts employees involved in Hulu Live TV operations and potentially broadens content access for customers through the new Fubo partnership. The continued investment in theatrical releases, with 20 films expected in fiscal year 2026, underscores Disney's commitment to its content pipeline, which is vital for feeding its streaming platforms and theme parks.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant competitive pressures and evolving consumer preferences in the entertainment industry. The filing explicitly mentions 'deterioration in or pressures from competitive conditions, including competition to create or acquire content, competition for talent and competition for advertising revenue' as a key risk factor. Additionally, 'consumer preferences and acceptance of our content, offerings, pricing model and price increases, and corresponding subscriber additions and churn' pose ongoing challenges to maintaining and growing its 132 million Disney+ and 64 million Hulu subscribers.

Analyst Insight

Investors should monitor Disney's direct-to-consumer subscriber growth and profitability metrics closely, especially following the Hulu Live TV transaction with FuboTV Inc. The company's ability to effectively monetize its extensive content library and new film releases, such as the 20 films expected in fiscal year 2026, will be critical for future performance.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

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total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

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cash Position

Not Disclosed

revenue Growth

Not Disclosed

Revenue Breakdown

Key Numbers

• $176.6 billion — Aggregate market value of common stock held by non-affiliates (As of the last business day of the most recently completed second fiscal quarter)
• 1,785,288,846 — Shares of common stock outstanding (As of November 5, 2025)
• 132 million — Paid Disney+ subscribers (Estimated as of September 27, 2025)
• 64 million — Paid Hulu subscribers (Estimated as of September 27, 2025)
• 70% — Disney's interest in combined Hulu Live TV and Fubo entity (Post-closing on October 29, 2025)
• 20 — Expected film releases (During fiscal year 2026)
• 62 million — FX domestic channel subscribers (As of September 2025, based on Nielsen Media Research)
• 145 million — International General Entertainment channel subscribers (Estimated as of September 2025)
• 130 million — International Family channel subscribers (Estimated as of September 2025)
• 8 — Owned domestic television stations (Reaching approximately 20% of U.S. television households)

Key Players & Entities

• Walt Disney Co (company) — Registrant
• FuboTV Inc. (company) — Partner in Hulu Live TV asset combination
• New York Stock Exchange (regulator) — Exchange where DIS common stock is registered
• Hearst (company) — 50% owner of A+E Global Media
• Industrial Light & Magic (company) — Post-production services provider
• Skywalker Sound (company) — Post-production services provider
• Tata Play Limited (company) — Direct-to-home satellite distribution platform in India, 30% owned by Disney
• Nielsen Media Research (company) — Source for domestic linear channel subscriber estimates
• ABC Television Network (company) — Domestic Linear Network
• A+E Global Media (company) — 50% equity investment

FAQ

Risk Factors

• Competition in Content Creation and Distribution [high — market]: The company faces intense competition in creating and distributing film and episodic content, as well as direct-to-consumer services. This competition can impact subscriber growth and advertising revenue for services like Disney+ and Hulu, which have 132 million and 64 million subscribers respectively.
• Changing Consumer Preferences [high — market]: Shifts in consumer preferences for entertainment content and delivery methods pose a significant risk. The success of Disney+ and Hulu is dependent on their ability to adapt to evolving viewing habits and content demands.
• Global Economic Conditions [medium — financial]: Deterioration in global economic conditions can negatively affect consumer spending on entertainment, impacting revenue from Experiences (theme parks, etc.) and subscription services. The company's diversified operations across multiple segments are exposed to these macroeconomic factors.
• Integration of FuboTV Assets [medium — operational]: The strategic combination of certain Hulu Live TV assets with FuboTV Inc., where Disney holds a 70% interest, introduces operational integration risks. Successful synergy realization and management of this new entity are critical.
• Linear Network Subscriber Declines [medium — market]: While domestic channels like FX reach 62 million subscribers, the broader trend of cord-cutting and declining affiliate fees for linear networks presents a persistent risk to this revenue stream.

Industry Context

The entertainment industry is characterized by intense competition in content creation and distribution, driven by the rapid growth of direct-to-consumer streaming services. Traditional linear television networks face challenges from cord-cutting and evolving consumer viewing habits. Companies are investing heavily in original content and expanding their global reach to capture market share.

Regulatory Implications

While not explicitly detailed in the provided text, Disney, like other major media companies, operates under various regulatory frameworks concerning content, advertising, and media ownership. The combination with FuboTV may also attract scrutiny depending on the specific regulatory environment.

What Investors Should Do

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Key Dates

• 2025-10-29: Combination of certain Hulu Live TV assets with FuboTV Inc. — Disney now holds a 70% interest in the new combined entity, representing a strategic shift in its live TV distribution strategy.
• 2025-09-27: Fiscal year end — Reporting period for subscriber numbers for Disney+ (132 million) and Hulu (64 million).

Glossary

Direct-to-Consumer (DTC)

Services that deliver content directly to consumers without intermediaries, such as streaming platforms. (Key strategy for Disney with services like Disney+ and Hulu, aiming to capture subscriber revenue and engagement.)

Linear Networks

Traditional television channels that broadcast content on a schedule, such as ABC, FX, and National Geographic. (A significant segment for Disney, generating revenue from affiliate fees and advertising, though facing industry headwinds.)

Virtual Multi-Channel Video Programming Distributor (vMVPD)

A service that offers live linear streams of cable and broadcast networks over the internet, like Hulu Live TV. (Part of Hulu's offering, competing in the evolving landscape of television distribution.)

Episodic Content

Television shows or series released in episodes. (A core product within Disney's Entertainment segment, driving content sales and direct-to-consumer engagement.)

Affiliate Fees

Payments made by cable or satellite providers to networks for the right to carry their channels. (A primary revenue source for Disney's Linear Networks segment.)

Year-Over-Year Comparison

The provided text focuses on the fiscal year ended September 27, 2025, and does not contain comparative data from the previous year's 10-K filing. Therefore, a direct comparison of key metrics such as revenue growth, margin changes, or the emergence of new risks cannot be made based solely on this information.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value DIS New York Stock Exchange

Filing Documents

• dis-20250927.htm (10-K) — 4104KB
• fy2025_q4x10kxex1030.htm (EX-10.30) — 13KB
• fy2025_q4x10kxex21.htm (EX-21) — 48KB
• fy2025_q4x10kxex22.htm (EX-22) — 3KB
• fy2025_q4x10kxex23.htm (EX-23) — 2KB
• fy2025_q4x10kxex31a.htm (EX-31.A) — 12KB
• fy2025_q4x10kxex31b.htm (EX-31.B) — 12KB
• fy2025_q4x10kxex32a.htm (EX-32.A) — 5KB
• fy2025_q4x10kxex32b.htm (EX-32.B) — 5KB
• fy2025_q4x10kxex991.htm (EX-99.1) — 103KB
• dis-20250927_g1.jpg (GRAPHIC) — 70KB
• 0001744489-25-000155.txt ( ) — 22185KB
• dis-20250927.xsd (EX-101.SCH) — 138KB
• dis-20250927_cal.xml (EX-101.CAL) — 131KB
• dis-20250927_def.xml (EX-101.DEF) — 812KB
• dis-20250927_lab.xml (EX-101.LAB) — 1447KB
• dis-20250927_pre.xml (EX-101.PRE) — 1119KB
• dis-20250927_htm.xml (XML) — 4459KB

Business

ITEM 1. Business 2

Risk Factors

ITEM 1A. Risk Factors 17

Unresolved Staff Comments

ITEM 1B. Unresolved Staff Comments 27 ITEM 1C. Cybersecurity 27

Properties

ITEM 2. Properties 28

Legal Proceedings

ITEM 3. Legal Proceedings 29

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 29 Information About our Executive Officers 29 PART II

Market for the Company's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

ITEM 5. Market for the Company's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 56

Financial Statements and Supplementary Data

ITEM 8. Financial Statements and Supplementary Data 58

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 58

Controls and Procedures

ITEM 9A. Controls and Procedures 58

Other Information

ITEM 9B. Other Information 58

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 58 PART III

Directors, Executive Officers and Corporate Governance

ITEM 10. Directors, Executive Officers and Corporate Governance 59

Executive Compensation

ITEM 11. Executive Compensation 59

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 59

Certain Relationships and Related Transactions, and Director Independence

ITEM 13. Certain Relationships and Related Transactions, and Director Independence 59

Principal Accounting Fees and Services

ITEM 14. Principal Accounting Fees and Services 59 PART IV

Exhibits and Financial Statement Schedules

ITEM 15. Exhibits and Financial Statement Schedules 60

Form 10-K Summary

ITEM 16. Form 10-K Summary 65

SIGNATURES

SIGNATURES 66 Consolidated Financial Information — The Walt Disney Company 67 Cautionary Note on Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may include statements concerning, among other things, financial results; business plans (including statements regarding new products and services, future expenditures, cost, investments and transactions for which conditions to close have not been satisfied, including entering into additional agreements, regulatory or other approvals or other conditions); future liabilities and other obligations; impairments and amortization; estimates of the financial impact of certain items, accounting treatment, events or circumstances; competition and seasonality on our businesses and results of operations; and capital allocation, including share repurchases and dividends. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "would," "expects," "plans," "could," "intends," "target," "projects," "forecasts," "believes," "estimates," "anticipates," "potential," "continue," "assumption" or "judgment" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These statements reflect our current views with respect to future events and are based on assumptions as of the date of this report. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. Such differences may result from actions taken by the Company,

Business

ITEM 1. Business The Walt Disney Company, together with the subsidiaries through which businesses are conducted (the Company), is a diversified worldwide entertainment company with operations in three segments: Entertainment, Sports and Experiences. The terms "Company", "we", "our" and "us" are used in this report to refer collectively to the parent company and the subsidiaries through which businesses are conducted. ENTERTAINMENT The Entertainment segment generally encompasses the Company's non-sports focused global film and episodic content production and distribution activities. The lines of business within Entertainment along with their significant business activities include the following: Linear Networks Domestic: ABC Television Network (ABC Network); Disney, Freeform, FX and National Geographic (owned 73% by the Company) branded television channels; and eight owned ABC television stations International: Disney, FX and National Geographic (owned 73% by the Company) branded television channels A 50% equity investment in A+E Global Media (formerly A+E Television Networks) (A+E), which develops and distributes content globally Direct-to-Consumer Disney+: a global direct-to-consumer (DTC) service that primarily offers general entertainment and family programming. Subscribers to both Disney+ and one of the ESPN DTC plans (see Sports segment discussion) have access to certain sports content through Disney+. Hulu: a U.S. DTC service that offers general entertainment programming and a virtual multi-channel video programming distributor (vMVPD) service that includes live linear streams of various cable and broadcast networks (Hulu Live TV service). Subscribers to both Hulu and one of the ESPN DTC plans have access to certain sports content through Hulu. Content Sales/Licensing Theatrical distribution Sale/licensing of film and episodic content to television and video-on-demand (TV/VOD) services Home entertainment distribution: electronic home video lic