Toy Story 5 and theme parks boost Disney

By the Editorial Team · Friday, August 7, 2026

Disney plans to introduce free, ad-supported streaming channels and expand sports content on Disney+ to attract price-sensitive viewers and capitalize on the growing FAST channel market. This strategy, along with hosting third-party services, aims to position Disney+ as a leading aggregated streaming platform without pursuing major acquisitions or divestitures.

Disney is exploring the introduction of free, ad-supported streaming channels and plans to expand sports content on Disney+ as part of its strategy to strengthen the platform’s appeal, Chief Executive Josh D’Amaro said during the company’s fiscal third-quarter earnings call on Wednesday.

D’Amaro highlighted the company’s interest in launching a free service targeting price-sensitive customers, aligning with the growing market for FAST (free ad-supported streaming TV) channels such as Fox’s Tubi and Paramount’s Pluto TV. These platforms are gaining popularity as consumers increasingly cut traditional pay-TV subscriptions and reassess their streaming service options amid rising prices.

In addition, Disney is open to hosting third-party streaming services on Disney+, citing the recent success of its collaboration with Warner Bros Discovery’s HBO Max. “We’re one of a very short list that’s positioned for aggregation,” D’Amaro said, referring to the potential of Disney+ to become a consolidated platform for diverse content providers.

Contrasting with recent moves by rivals like Comcast, which spun off its entertainment assets, or Fox’s $22 billion acquisition of Roku, Disney does not currently anticipate major acquisitions or divestitures. “We have a good hand to play and I like where we sit,” D’Amaro added, noting the company’s strong performance relative to competitors since his appointment in March.

For the quarter ending June 30, Disney reported revenue of $25.2 billion, a 7 percent increase from the previous year, driven by strong attendance at its domestic theme parks and the box office success of Toy Story 5. While streaming remains a key focus for the media industry, Disney’s results underscore the continued significance of in-person entertainment experiences to its overall financial health.

Net income for the quarter fell to $2.6 billion, roughly half the previous year’s figure, primarily due to a one-time tax benefit recorded in the prior period. However, on an adjusted basis, diluted earnings per share rose to $2.06 from $1.61, exceeding analyst expectations.

Disney’s experiences segment, which includes theme parks and cruise lines, saw a 10 percent increase in revenue. Attendance at its U.S. parks grew by 3 percent, while per capita spending rose 4 percent during the quarter, reflecting sustained demand for its physical entertainment offerings.

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