Disney has nearly doubled its global streaming subscriber base over the past five years, yet its combined US viewership share for Disney+ and Hulu has remained largely flat at 4.7% of total television viewing, according to Nielsen. This figure is only marginally above the 4.4% recorded in May 2021 and well below the 5.6% peak reached in summer 2023. In comparison, Netflix commands 8.3% of total US TV viewing among paid streamers, while free platforms like YouTube have surged to a 12.9% share, underscoring the challenge Disney faces in driving deeper engagement despite subscriber growth.

Disney's direct-to-consumer segment delivered $1.3 billion in operating income for fiscal 2025, up from $143 million in the prior 12 months. This turnaround follows Disney+ achieving profitability in 2024 and reflects disciplined cost management and gradual price increases over five consecutive years. Across all segments—entertainment, sports and experiences—Disney reported fiscal 2025 revenue of $94 billion (up 3% year-over-year) and GAAP net income of $12 billion, a 58% increase. Investors have noted that stagnant streaming engagement may be weighing on the stock, which has risen just 3% over the past year versus a near 17% gain for the broader market.

To reignite viewership growth, Disney plans to integrate Hulu into Disney+ in 2026, creating a unified ‘super app’ that blends Marvel, Star Wars and ESPN content alongside Hulu originals. This bundling is intended to cross-pollinate audiences and reduce churn following price hikes. CEO Bob Iger also outlined plans to embed AI and commerce features in the streaming platform to drive engagement and funnel subscribers to theme parks and cruises. Additionally, a partnership with OpenAI will allow fans to generate short character snippets within Disney+ starting next year, targeting younger audiences and exploring new interactive experiences.