Disney's Streaming and Theme Park Success Amid Declining Cable Revenue

Wed 6th Aug, 2025

Disney continues to thrive in its streaming and theme park sectors, but its once-reliable cable television business in the United States is proving to be a significant drawback. In its latest quarterly report, Disney announced a modest revenue increase of 2%, totaling $23.65 billion (approximately EUR20.4 billion), which fell short of analysts' expectations. Following this announcement, Disney's stock saw a decline of over 2% in pre-market trading.

On a positive note, Disney has raised its forecast for operational earnings in the streaming segment for the current fiscal year, which ends in September, from $1 billion to $1.3 billion. Initially, the company was willing to absorb significant losses as it built its streaming service, Disney+, which now boasts approximately 127.8 million subscribers--an increase of 1.8 million in just three months.

In contrast, the revenue generated from Disney's cable television operations has experienced a steep decline, dropping by 15% year-over-year to $2.27 billion. This segment, once a stable source of income, has struggled as more American households transition away from expensive cable subscriptions in favor of streaming alternatives. In response to this shift, Disney is set to launch a new sports streaming service under its ESPN brand at the end of August.

Despite the challenges in the cable sector, Disney reported a significant increase in overall profit, doubling to $5.26 billion compared to the previous year, primarily due to a tax credit. This positive financial outcome underscores the resilience of Disney's streaming and theme park operations, which continue to draw in substantial revenue even as traditional cable television wanes.

As the landscape of entertainment continues to evolve, Disney's strategies to embrace streaming and enhance its theme park offerings may prove crucial for its future growth. The company's ability to adapt to changing consumer preferences will likely determine its long-term success in a competitive market.


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