Updated Aug 17 at 11:15am ET.
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Disney has reached a deal with Formula E, the racing series for electric cars, to stream its events globally on Disney+ and ESPN. The agreement covers 144 countries and begins with the 2026-27 season this December.
This move helps Disney build out its sports library as it prepares to move ESPN to a full streaming service. Adding live sports is a key way for the company to keep subscribers from canceling their monthly plans, which is essential for making the streaming business more profitable over time.
Source: Reuters
Disney+ and Hulu are adding six video podcast titles to their platforms through a new deal with iHeartMedia. The rollout starts with a show called Hey Jonas as the company looks for cheaper ways to keep users engaged on its apps. While this is a small content addition, it shows Disney's focus on filling its apps with more than just high-budget movies. Adding podcasts is a low-cost way to increase the time people spend on the apps, which helps support the advertising side of the business.
Source: Reuters
Disney reported adjusted earnings of $2.06 per share, well ahead of the $1.86 analysts expected. While revenue of $25.2 billion was slightly lower than the $25.4 billion forecast, the business is becoming more efficient. Profits from streaming services like Disney+ more than doubled compared to last year, showing that the company has successfully moved past the era of losing billions to build its digital audience.
The results highlight how a single hit movie can power the entire company. Toy Story 5 did more than just sell movie tickets; it drove people to buy merchandise, watch more content on Disney+, and visit the theme parks. This cycle is the core of why the business is hard to replicate. Even with some concerns about a general travel slowdown, the parks division set a new quarterly record with nearly $10 billion in revenue.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
This deal allows TikTok creators to legally use clips from Disney's massive back catalog of movies and shows. It is a shift in how the company protects its characters, choosing to let fans remix them rather than blocking their use on social media.
For a long-term owner, this is about keeping Disney's stories relevant to younger audiences. By making characters like Darth Vader available for short-form videos, Disney is essentially getting free marketing on the world's most popular video app, which helps drive interest in its new movies and theme park attractions.
Source: Reuters
CEO Josh D'Amaro confirmed that Disney is looking into a free streaming product. This would likely be a FAST service, which stands for Free Ad-supported Streaming Television, where viewers watch scheduled programs with commercials rather than paying a monthly fee.
This move shows how important advertising has become to Disney's digital strategy. By offering a free tier, the company can make money from people who are not willing to pay for a subscription while also using the platform to promote its paid services and theme parks.
Source: CNBC
Analysts recently reaffirmed their support for Disney following a flurry of positive ratings on August 6. Most analysts, 40 of 64, rate the stock a buy, and the average price target of $128 suggests a 22% increase from today.
Disney has beaten profit estimates for eight straight quarters. Management has a clear track record of delivering better results than analysts expect, especially as streaming losses have turned into gains.
| Expectation | |
|---|---|
| EPS | $1.64 |
| Revenue | $25.07B |
