Disney’s Entertainment direct-to-consumer business delivered another strong quarter, with Q4 operating income up 39% year on year and full-year streaming profit reaching $1.3 billion – $1.2 billion higher than the previous year and $300 million ahead of the company’s earlier guidance.
Only three years ago, Disney’s DTC operations were posting a $4 billion operating loss.
Total Disney+ and Hulu subscriptions climbed to 195.7 million at the end of Q4, an increase of 12.4 million on the prior quarter, driven largely by wholesale growth at Hulu. Disney+ ended the period with 131.6 million subscribers, up 3.8 million quarter on quarter, with gains in both domestic and international markets.
Quarterly DTC revenue grew 8% year on year, despite a two-percentage-point drag from the removal of India’s Disney+ Hotstar from the comparable base. Operating income rose 39% to $352 million, fuelled by higher subscription revenue from ARPU and subscriber growth, partially offset by increased programming, marketing, technology and distribution spend. For fiscal 2025, DTC operating income of $1.3 billion was driven by improved results at both Disney+ and Hulu.
Disney is now positioning streaming as a core growth engine and pushing towards a unified app strategy. Internationally, Hulu has become the general entertainment brand within Disney+, replacing the Star tile, while domestically the company is working to consolidate its entertainment output into a single app to simplify the user experience and better showcase its bundles. The group is also rolling out navigation and discovery upgrades, more personalised recommendations and an expanded perks programme for Disney+ subscribers, alongside targeted investment in local originals and licensed content in priority markets
Looking ahead, Disney says it is on track to grow its streaming business further in fiscal 2026 and is targeting a 10% operating margin for its Entertainment DTC SVOD operation. Management is guiding to Entertainment DTC SVOD operating income of around $375 million in Q1 as it continues to scale Disney+ and Hulu and readies a broader integrated app experience.
