Disney closed out its 2025 fiscal year on a streaming high note, delivering healthy quarterly subscriber growth for Disney+ and Hulu — the final quarter the media giant will report subscriber figures — and a 39% increase in direct-to-consumer operating income.
The Mouse House reported a combined 195.7 million Disney+ and Hulu subscriptions as of Sept. 27, an increase of 12.4 million for the three-month period, which topped Wall Street estimates by 2.1 million.
Disney+ subscribers increased by 3.8 million in the quarter to hit 131.6 million, including a net gain of 1.5 million in the U.S. and Canada (to stand at 59.3 million). Helping boost Disney+ sign-ups in the quarter was the Sept. 3 release on the streamer of the live-action remake of “Lilo & Stitch,” which was a box-office smash. The film had 14.3 million views during its first five days on Disney+, making it the second-biggest live action premiere on the streamer after 2023’s “The Little Mermaid” (16 million views in first five days). Disney also called out “Alien: Earth” as FX’s biggest premiere ever on Disney+ and Hulu.
Hulu netted 8.6 million new subs, primarily from Disney’s expanded distribution deal with Charter to provide the ad-supported version of Hulu to all of Charter’s Spectrum TV Select customers for no additional charge. Note that Disney’s subscriber tallies include users who “receive an entitlement to a service through wholesale arrangements” whether or not they actually watch anything.
Some analysts had expected Disney+ sub growth to flatline in the quarter, after a wave of consumers threatened to cancel their subscriptions because of ABC’s decision to briefly suspend Jimmy Kimmel’s late-night show in September over his on-air comments about “the MAGA gang” trying to score political points from Charlie Kirk’s murder. In addition, some conservatives said they dropped Disney’s streaming services in protest of Kimmel’s remarks. While cancellation rates for Disney+ and Hulu doubled in September vs. the prior two months, sign-ups also increased for both services, according to independent measurement firm Antenna.
Meanwhile, Disney on Sept. 23 announced U.S. price increases across most Disney+ and Hulu plans and bundles, the third price hike in three years. Because those went into effect Oct. 21, subscriber cancellations from the higher fees will likely be greater in the year-end quarter.
Disney is now in the process of merging Disney+ and Hulu and is steadily adding integrated features, after completing the full acquisition of Hulu in a deal with Comcast this June. In 2026, the company expects to fully combine Hulu into Disney+ into a unified app and service, although Disney says users will still be able to purchase them as standalone plans. In addition, Hulu last month replaced Star as its global entertainment streaming brand outside the U.S.
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In the September quarter, streaming was the bright spot for Disney’s entertainment segment amid revenue and operating income declines for linear TV and theatrical releases. Direct-to-consumer revenue increased 8% to $6.25 billion and operating income jumped 39% to $352 million. The results don’t reflect Disney’s acquisition of Fubo, which it closed Oct. 29 and is merging with the Hulu + Live TV business.
As previously announced, Disney will not report Disney+ or Hulu paid subscribers or average revenue per unit (ARPU) after this quarter because those metrics have become “less meaningful to evaluating the performance of our businesses.” That follows the lead of Netflix, which ended the practice at the start of 2025.
Disney+ domestic ARPU was flat sequentially at $8.09/month for the September quarter. Average revenue per paid subscriber for Hulu’s VOD tiers declined 2% quarter over quarter to $12.20/month (reflecting lower per-sub wholesale rates in the Charter deal).
Disney no longer reports streaming subscribers for ESPN. Its final disclosure for ESPN+ (now called ESPN Select) was 24.1 million subscribers as of the end of the June quarter. In August, the sports programmer bowed ESPN Unlimited, a $29.99/month standalone streamer that for the first time includes everything from ESPN’s networks and services.
From Variety US