Disney+ Surges to 131.6 Million Subscribers Despite Losses

The subscriber count for Disney+ has reached an impressive 131.6 million users, bolstered by the recent release of the live-action adaptation of Lilo & Stitch. Despite this growth in streaming services, the entertainment giant reported a loss of $52 million in its content sales and licensing activities for the fourth quarter of fiscal 2025. This downturn was attributed to weaker theatrical results compared to the same period in the previous year, which had generated an operating income of $316 million.

During a conference call with analysts to discuss the company’s fourth-quarter performance, Disney CEO Bob Iger expressed optimism regarding the company’s theatrical prospects. He highlighted that the slate for the remainder of fiscal 2026, which includes upcoming releases and the live-action Lilo & Stitch, is “about as strong as it’s been in a while, maybe stronger than it’s been in a while.” Iger reassured stakeholders, stating, “We feel good about the direction of the studio, both the current slate, the slate coming up and what it looks like in the future.”

In response to inquiries about potential mergers and acquisitions in the Hollywood landscape, Hugh Johnston, Disney’s senior vice president and chief financial officer, 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 underscores the company’s strategic focus on its existing portfolio rather than seeking new acquisitions.

Financial Overview and Future Investments

In prepared commentary regarding the results for the three months ending September 27, 2025, Disney management revealed plans to invest $24 billion in content for its entertainment and sports sectors in fiscal 2026. This marks an increase of $1 billion from fiscal 2025. The significant investment aims to enhance the company’s competitive edge in a rapidly changing media landscape.

The streaming launch of the live-action Lilo & Stitch contributed to an increase of 2.5 million subscribers in international markets, bringing the total to 72.4 million. In the United States and Canada, the service added 1.5 million subscribers, reaching 59.3 million. These subscriber gains reflect Disney’s ongoing commitment to expanding its streaming reach and appealing to a broader audience.

Overall, Disney reported fourth-quarter revenues of $22.5 billion, which remained comparable to the revenues from the fourth quarter of fiscal 2024. For the entire fiscal year, revenues saw a modest increase of 3%, totaling $94.4 billion. However, total segment operating income decreased by 5% to $3.48 billion, with the entertainment segment experiencing a significant drop in operating income of 35%, down to $691 million.

Disney’s ability to adapt and invest strategically in its content offerings will be crucial as it navigates the competitive landscape of entertainment. With strong leadership and a robust pipeline of forthcoming projects, the company appears poised to continue its growth trajectory, even in the face of recent financial challenges.