The Walt Disney Company (DIS): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind The Walt Disney Company's engine as we head into late 2025, and honestly, it's a tale of two giants: the hard pivot to profitable streaming and the sheer juggernaut that is Experiences. After years of heavy investment, the Direct-to-Consumer segment finally posted an operating income of $1.3 billion in fiscal 2025, a huge win, but it still trails the $10.0 billion operating income from the theme parks and resorts that year. To keep the content pipeline flowing, they are projecting a massive $24 billion content spend for FY2026, backed by $18 billion in cash from operations in FY2025, so the capital commitment is real. Dive into the full Business Model Canvas below to see exactly how The Walt Disney Company is balancing these massive content bets with its world-class, immersive physical experiences.

The Walt Disney Company (DIS) - Canvas Business Model: Key Partnerships

You're looking at the backbone of The Walt Disney Company's content and distribution moat, which relies heavily on strategic alliances. These partnerships are what translate your beloved intellectual property (IP) into tangible revenue streams across multiple platforms.

Technology Firms like NVIDIA for AI and Robotics Development

The Walt Disney Company continues to forge deeper ties with technology leaders, particularly in areas like generative AI and advanced robotics for its Experiences segment. While specific financial outlays for the NVIDIA partnership in fiscal year 2025 aren't publicly itemized, the strategic importance is clear given the industry trend toward digital transformation.

The company's overall commitment to content creation and distribution technology is substantial. For instance, The Walt Disney Company plans to spend around $24 billion on licensing and making programming in fiscal 2026, which is an increase of about $1 billion from fiscal 2025 programming costs. This investment underpins the need for advanced computational partners.

Major Sports Leagues like the NFL for Live Content Streaming Rights

The partnership with the National Football League (NFL) is a massive strategic play to fuel the direct-to-consumer (DTC) future. ESPN entered into a non-binding agreement where it is acquiring the NFL Network and the rights to distribute NFL RedZone. In exchange, the NFL will receive a 10% ownership stake in ESPN, a stake estimated to be worth at least $2 billion.

This deal also secures significant live content:

• ESPN will acquire the rights to broadcast 28 NFL games annually.
• ESPN will take over NFL Fantasy Football, merging it with ESPN Fantasy Football.
• The deal includes an additional three NFL games per season to air on NFL Network.

This move is designed to bolster ESPN's new DTC service, which launched in August 2025. To be fair, the deal is subject to regulatory approval and might not take effect until the 2026 football season.

Wholesale Distributors/Retailers for Consumer Product Licensing

Consumer Products remains a powerhouse, directly stemming from the strength of The Walt Disney Company's IP vault. For fiscal 2025, the total annual retail sales of IP-licensed consumer products reached $62 billion, placing The Walt Disney Company first globally in this sector. This figure significantly outpaces competitors like Authentic Brands Group at $32 billion and Hasbro at $16.1 billion.

Here's a look at the scale of this licensing revenue compared to peers:

Apparel is a leading growth category, with 70% of brand owners identifying it as a key opportunity for 2025-2026.

Webtoon Entertainment for Publishing Iconic IP as Digital Comics

The relationship with WEBTOON Entertainment is focused on creating a new digital comics platform by broadening their existing relationship. While this partnership is a key part of the content strategy, specific financial terms or subscriber numbers tied directly to this collaboration for fiscal 2025 were not reported in the latest earnings releases. It's about expanding the IP ecosystem.

Charter Communications for Wholesale Distribution of Hulu Subscriptions

The expanded distribution agreement with Charter Communications is directly impacting streaming subscriber growth. Under this deal, Hulu (With Ads) was added to all Spectrum TV Select customers at no extra cost. This move is credited with helping Hulu add 8.6 million subscribers in the fourth quarter of fiscal 2025 alone.

The combined streaming footprint is growing fast:

• Total Disney+ and Hulu subscriptions ended fiscal Q4 2025 at nearly 196 million.
• Spectrum TV Select customers receive Hulu (With Ads), ad-supported Disney+, and the new ESPN streaming service.
• The retail streaming value of this package for Spectrum customers is stated as more than $100 per month.

This wholesale bundling helps The Walt Disney Company drive subscriber volume as its DTC operating income for the quarter rose 39% to $352 million.

Finance: draft 13-week cash view by Friday.

The Walt Disney Company (DIS) - Canvas Business Model: Key Activities

Producing high-impact, franchise-based film and television content

The Walt Disney Company focuses on creating tentpole content across its studios, including Walt Disney Pictures, Marvel Studios, and Lucasfilm. The Entertainment segment's full-year operating income increased 19% to $4.7 billion for fiscal year 2025. The live-action Lilo & Stitch remake was noted as the highest-grossing Hollywood film at the global box office for the calendar year. This film also drove digital engagement, earning 14.3 million views during its first five days on Disney+. The theatrical distribution topline revenue for fiscal year 2025 was reported at $2.592 billion, against programming and production costs in content and licensing of $2.9 billion.

Managing and operating global theme parks, resorts, and cruise lines

The Disney Experiences segment delivered record financial results in fiscal year 2025. Full-year segment operating income reached an all-time high of $10.0 billion, marking an 8% increase, or $723 million, over the prior year. Total revenue for the division was $36.16 billion for the full fiscal year, up 6%. The launch of the Disney Treasure cruise ship contributed to growth in passenger cruise days.

Consolidating and enhancing the Direct-to-Consumer (DTC) streaming platform

The DTC segment showed significant profit growth in fiscal year 2025, achieving $1.33 billion in operating income for the full year, exceeding the guidance goal of $1.3 billion. For the fourth quarter, DTC revenue increased 8%, and operating income grew to $352 million. The combined Disney+ and Hulu paid subscription base ended the quarter at 196 million, an increase of 12.4 million sequentially. The company announced plans to merge Hulu into the Disney+ platform in the following fiscal year.

• Disney+ Core paid subscribers at end of Q4 FY25: 132 million.
• Sequential Disney+ Core subscriber increase (Q3 to Q4 FY25): 3.8 million.
• DTC segment operating income for Q4 FY25: $352 million.

Monetizing intellectual property (IP) through licensing and merchandise

The strength of key franchises is monetized across consumer products and licensing. Retail sales of consumer products merchandise tied to the Stitch franchise alone eclipsed $4 billion in fiscal year 2025, including sales by licensees. The Content Sales/Licensing and Other category within the Entertainment segment saw its operating income increase by $536 million to $312 million in Q1 fiscal 2025, driven by titles like Moana 2.

Developing advanced AI and personalization features for digital platforms

While specific financial investment figures for AI development aren't detailed in the segment breakdowns, the strategy is implied through platform performance. The launch of the ESPN direct-to-consumer service in August 2025 incurred higher marketing costs, suggesting investment in new digital distribution methods. The overall DTC segment's focus on profit growth and subscriber retention points to ongoing investment in user experience and personalization to drive engagement and reduce churn.

The Walt Disney Company (DIS) - Canvas Business Model: Key Resources

You're looking at the core assets that make The Walt Disney Company a powerhouse, the things that are incredibly hard for anyone else to replicate. These aren't just line items; they are the foundation of their entire operation, from the cinema to the theme park gate.

The most significant resource is the unparalleled library of iconic IP. This is the engine that drives nearly every segment. The sheer depth and cultural resonance of the characters and worlds owned by The Walt Disney Company-spanning Disney, Pixar, Marvel, and Star Wars-allow for continuous monetization across film, streaming, and physical experiences. This IP is so valuable that recent park expansions are heavily themed around these franchises, like the new Cars Land and Villains Land projects, signaling a clear strategy of leveraging existing, beloved content.

The global theme park and resort infrastructure, housed under the Experiences segment, represents massive, difficult-to-replicate physical assets. This segment delivered record full-year segment operating income for fiscal year 2025. Here's a look at the scale and performance:

The strategy here is clearly yield over volume; fewer domestic guests are paying significantly more.

The Direct-to-Consumer (DTC) streaming platforms-Disney+, Hulu, and ESPN+-represent a massive, integrated digital distribution network. While The Walt Disney Company announced it will stop reporting raw subscriber counts late in 2025, the final reported figures for the fiscal year show significant scale:

• Disney+ Subscribers (Q4 FY2025): 132 million, an increase of 3.8 million versus Q3 FY2025.
• Combined Disney+ and Hulu Subscribers (Q4 FY2025): 196 million total.
• ESPN+ Subscribers (Q3 FY2025): 24.1 million (last reported figure before reporting change).
• DTC Operating Income (Q4 FY2025): Swung to a profit of $352 million.

The integration of Hulu content onto the Disney+ platform is a key structural asset in this space.

The intangible asset of creative talent and world-class storytellers is what feeds the entire IP machine. This resource is responsible for the continued momentum at the film studios, which is crucial for feeding the content pipeline across all other businesses.

Finally, the financial strength backing these operations is substantial. The company reported significant cash generation for the fiscal year:

• Cash Provided by Operations (FY 2025): $18 billion.

This financial capacity supports the ongoing capital investments, such as the planned doubling of the share repurchase target to $7 billion for fiscal year 2026.

The Walt Disney Company (DIS) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose The Walt Disney Company over everyone else, and honestly, the numbers from fiscal 2025 tell a compelling story of both enduring strength and necessary evolution. The value propositions are deeply rooted in its intellectual property (IP) and its ability to deploy that IP across multiple, interconnected platforms.

Unparalleled storytelling that entertains, informs, and inspires

The film studio's ability to generate massive global hits remains a core value, even with a mixed slate in 2025. The Walt Disney Studios surpassed $4 billion at the global box office for the fourth consecutive year in fiscal 2025. This was anchored by the live-action remake of Lilo & Stitch, which became the first Motion Picture Association title of 2025 to cross the $1 billion global mark. Domestically, Lilo & Stitch pulled in $416.2 million, with an international take of $584.8 million. The film's opening weekend set a record for the biggest Memorial Day debut ever, grossing $183 million domestically in four days. Still, the studio saw some underperformance, with titles like Snow White grossing $87.2 million domestically and Elio earning $72.987 million domestically for the year. The success of these stories immediately flows into other parts of the business; for instance, consumer products merchandise sales for Stitch eclipsed $4 billion in fiscal 2025.

Immersive, high-quality, and magical real-world experiences

The Experiences division delivered a record-breaking year in fiscal 2025, proving the physical experience is a massive draw. The segment's total revenue rose 6% to $36.2 billion for the full fiscal year, leading to an all-time high operating income of $10 billion. This magic is global, though domestic attendance trends showed some softness. For the full fiscal year 2025, attendance at U.S. theme parks was down by 1%, following a 1% increase the prior year. Conversely, international parks saw a 1% attendance increase, with strong growth at Disneyland Paris contributing to a 25% year-over-year operating income increase for the international parks sub-segment in Q4. Looking ahead, management noted that advanced bookings for parks are up 3% in the first quarter of fiscal 2026.

A unified, comprehensive streaming ecosystem for all demographics

The direct-to-consumer (DTC) business is now a consistent profit driver, offering a bundle of services to cover different needs. By the end of fiscal Q4 on September 27, 2025, The Walt Disney Company had nearly 196 million combined Disney+ and Hulu subscribers. For the July-September quarter (Q4 fiscal 2025), DTC revenue grew 8% year-over-year to $6.2 billion, with operating income increasing 39% to $352 million. This marks a significant turnaround, as the DTC operations faced a $4 billion annual operating loss just three years prior. Hulu was a key driver in Q4, adding 8.6 million subscribers during the quarter. For the full fiscal year 2025, the Entertainment DTC segment delivered an operating income of $1.3 billion. Even with a slight dip in Q1 2025, Disney+ maintained a base of 124.6 million subscribers, generating an average revenue per user of $7.55 that quarter.

Family-friendly, trusted, and nostalgic entertainment content

The value proposition here is the trust associated with established, multi-generational brands like Disney, Pixar, and Marvel, which drives both theatrical and streaming engagement. The success of Lilo & Stitch on the big screen translated directly to the platform, earning 14.3 million views during its first five days on Disney+. The company's overall fiscal 2025 results reflected this focus, with Income before income taxes for the year reaching $12.0 billion, a substantial increase from $7.6 billion the prior year. The company is doubling down on this content strategy, planning to invest around $24 billion on licensing and producing programming for fiscal 2026.

Access to exclusive, high-value live sports content via ESPN

The introduction of the full direct-to-consumer ESPN service in August 2025 solidifies access to premium sports rights as a major offering. The Sports segment posted a segment operating income of $1 billion in Q4 fiscal 2025, an increase of $235 million year-over-year. For the full fiscal year 2025, the Sports segment operating income grew 20% to $2.882 billion. Domestic advertising revenue for ESPN networks in Q4 increased 8% over the prior-year quarter. This content is expensive, however; higher programming costs, reflecting contractual rate increases for the NBA and college sports, caused domestic operating income for ESPN to decline 7% in the quarter leading up to the DTC launch. The company is preparing for future costs, planning a content investment increase of about $1 billion for fiscal 2026, partly due to rising sports licensing costs.

Here's a quick look at the scale of the Entertainment and Sports segments for the full fiscal year 2025:

The Walt Disney Company (DIS) - Canvas Business Model: Customer Relationships

The Walt Disney Company focuses its customer relationships on creating deep, multi-platform engagement, moving guests from digital discovery to high-touch physical experiences.

Automated, personalized content discovery via AI-driven analytics

The Walt Disney Company deploys technology to tailor the digital experience, which supports the broader ecosystem. This personalization extends to the theme parks through devices like the MagicBand, which monitors preferences to offer tailored recommendations in real-time. The company's ability to predict visitor needs helps facilitate a smooth experience.

The success of this high-touch digital service is reflected in overall guest satisfaction metrics:

• Net Promoter Score (NPS) for media and entertainment sector: 38.
• Industry average NPS for media and entertainment: 32.
• Percentage of Disney guests classified as 'Promoters': 60%.

High-touch, experiential service at theme parks and resorts

Customer relationships in the Experiences segment are built on immersive, physical storytelling, driving significant per-guest spending even as attendance shifts. The strategy emphasizes yield over volume, using dynamic pricing and premium offerings to deepen emotional loyalty.

Financial data for the Experiences segment in fiscal year 2025 shows this approach is effective:

Domestic hotel operations saw a 2% increase in occupied room nights, and Disney Cruise Line contributed a 5% growth in passenger cruise days.

Direct engagement and loyalty programs (e.g., Disney Vacation Club)

Direct engagement is maintained through long-term commitment programs like the Disney Vacation Club (DVC). This program fosters a dedicated base of high-value consumers who commit to multi-year contracts and recurring fees.

DVC direct sales in September 2025 saw 170,620 points sold across 12 Walt Disney World resorts, an increase from the 169,085 points sold in August 2025. The total declared DVC inventory for these 12 resorts reached 5,817,509 points, representing 94.4% of the total points.

Annual dues, a key recurring financial touchpoint for members, saw varied changes for the 2025 billing year:

• Average growth in annual dues across all DVC properties: Approximate 4.9%.
• Old Key West 2025 Dues increase: 6.47%.
• Polynesian Villas and Bungalows 2025 Dues change: Decreased by 3.69%.
• Cabins at Fort Wilderness 2025 Dues change: Decreased by 2.28%.

Subscription-based models for recurring digital revenue

The subscription model, anchored by Disney+, drives recurring digital revenue and keeps customers within the content ecosystem. The company is shifting focus toward profitability within this segment.

Key subscriber and revenue metrics for the streaming services as of late 2025:

For Q1 of fiscal year 2025, the overall Disney+ ARPU rose to $7.55 from $7.20 in Q4 2024. About 30% of Disney+ subscribers globally use the ad-supported tier. The Disney Entertainment segment, which houses these services, reported revenue of $10.2 billion and an operating profit of $691 million in Q4 FY2025.

Finance: draft 13-week cash view by Friday.

The Walt Disney Company (DIS) - Canvas Business Model: Channels

Direct-to-Consumer (DTC) streaming apps (Disney+, Hulu, ESPN+)

The Walt Disney Company is shifting focus from raw subscriber counts to profitability for its Entertainment Direct-to-Consumer (DTC) business, with subscriber reporting for Disney+ and Hulu set to cease after the first quarter of fiscal 2026, and ESPN+ after the fourth quarter of fiscal 2025. The Entertainment DTC segment achieved an operating income of $352 million in the fourth quarter of fiscal 2025, a year-over-year increase of $99 million. Revenue for DTC in Q4 FY2025 increased 8%. For the third quarter of fiscal 2025, the Entertainment DTC segment posted an operating income of $346 million, a turnaround from a loss of $19 million in the year-ago period, with streaming revenue growing 6% to $6.2 billion.

Subscriber metrics leading up to the reporting change included:

• Combined Disney+ and Hulu subscriptions reached 196 million at the end of Q4 FY2025, an increase of 12.4 million versus Q3 FY2025.
• Disney+ subscribers stood at 132 million at the end of Q4 FY2025, up 3.8 million versus Q3 FY2025.
• In Q3 FY2025, core Disney+ had 128 million subscribers, and Hulu had 55.5 million.
• ESPN+ subscribers were 24.1 million in Q3 FY2025.

The launch of the ESPN DTC app showed promising adoption, with 80% of new sign-ups taking the Trio bundle (Disney+, Hulu, ESPN+).

Global theatrical releases for major film franchises

The theatrical channel performance is measured against prior periods buoyed by major releases. The Entertainment segment operating income for Q4 FY2025 was $691 million, a decrease of $376 million compared to the prior-year quarter, driven by theatrical slate comparisons. Content Sales/Licensing revenue was down 26% in Q4 FY2025, swinging to a $52 million loss. For the first quarter of fiscal 2026, the company guided an adverse impact to segment operating income of $400 million due to theatrical slate comparisons. The film Lilo & Stitch generated 14.3 million views during its first five days on Disney+.

Owned and operated Theme Parks, Resorts, and Cruise Lines

The Experiences division delivered a record full-year segment operating income of $10.0 billion for fiscal 2025, an increase of $723 million compared to the prior year. For the fourth quarter of fiscal 2025, segment operating income climbed 13% to $1.88 billion.

Strength in the Disney Cruise Line was cited in Q4 FY2025, supported by higher passenger cruise days. Looking ahead to Q1 FY2026, the company projected approximately $90 million in pre-opening expenses for the Disney Cruise Line fleet, specifically for the Disney Destiny and Disney Adventure.

Linear TV Networks (e.g., ABC, Disney Channel, ESPN cable)

Linear Networks faced headwinds, with Q4 FY2025 operating income declining $107 million versus Q4 FY2024, largely due to the Star India transaction, which contributed $84 million to results in the prior year's Q4. The Sports segment, which includes ESPN, saw Q4 FY2025 operating income of $911 million, a decrease of $18 million year-over-year. Domestic ESPN advertising revenue increased 8% in Q4 FY2025, partially offsetting higher marketing and programming costs.

For the full fiscal year 2025, the company projected its India business to contribute $73 million to the Entertainment segment operating income, a sharp decline from $254 million in the prior year. For Q1 FY2026, lower political advertising revenue is expected to create an adverse impact of $140 million.

E-commerce and partner retail for consumer products (ShopDisney)

Consumer Products showed growth within the Experiences segment. In Q2 Fiscal 2025, Consumer Products operating income increased 14% to $0.4 billion. Retail sales of consumer products merchandise related to the Stitch franchise, including sales by licensees, eclipsed $4 billion in fiscal 2025.

The Walt Disney Company (DIS) - Canvas Business Model: Customer Segments

You're looking at the core audience groups that fuel The Walt Disney Company's diverse revenue streams as of late 2025. It's not just one group; it's a carefully segmented portfolio spanning physical experiences and digital consumption.

Families with young children (ages 3-12) seeking family-friendly content represent the foundational audience for the Parks, Experiences and Products division. This segment is crucial for driving volume, though the company is increasingly focusing on yield over volume through dynamic pricing. For example, in 2024, Walt Disney World saw a total attendance of approximately 49.1 million visitors across its four main theme parks. The Magic Kingdom, the park most associated with classic family appeal, drew 17.85 million guests in 2024. This group is also captured in the streaming data, where, in the US, ages 2 to 7 account for 43% of the Disney Plus audience, according to 2024 data.

The appeal to teens and young adults (ages 13-35) for Marvel and Star Wars franchises is heavily reflected in the Direct-to-Consumer (DTC) subscriber base. The company's Q4 2025 earnings showed 132 million Disney+ subscribers globally. Streaming demographics show a strong pull for this age bracket; for instance, one analysis noted that nearly 42.2% of Disney Plus users are under 24, and another source indicated that 25% of US users are aged 18 to 34. The success of these franchises also drives engagement across the entire portfolio.

Nostalgic adults and parents (ages 25-45) valuing quality and shared experiences form the backbone of the high-spending, decision-making demographic. This group is key for both park visits and streaming subscriptions. For Disney+, the largest share of users, at 43.9%, falls between the ages of 25 and 44. In the theme parks, the median household income of visitors is approximately $100,000, and the average age of a park visitor was around 38 years old as of early 2024. This segment is targeted through nostalgic content like live-action remakes and experiences emphasizing family memory-making.

The segment of global middle- to upper-middle-income households for high-cost experiences underpins the profitability of the Experiences segment. This division delivered a record full-year operating income of $10.0 billion for fiscal year 2025. The focus on yield over volume, as seen in the modest U.S. park attendance decline offset by higher guest spending, confirms a strategic pivot toward customers with greater disposable income who can absorb premium pricing. The DTC segment also targets this group, with the ad-free tiers often being the choice for higher-income households.

Here is a snapshot of the key metrics tied to these customer segments as of late 2025:

The streaming service appeal is broad, but specific age groups dominate certain platforms. For instance, Hulu SVOD subscribers are mainly dominated by the 25-34 age group at 33.66%, according to November 2024 data.

You should note the ongoing shift in how The Walt Disney Company reports this data. Disney has announced it will stop reporting firm subscriber numbers for Disney+, Hulu, and ESPN+ starting after Q3 Fiscal 2025, focusing more on profitability metrics going forward.

• Families with young children drive volume to the Experiences segment.
• Marvel and Star Wars content anchors the Direct-to-Consumer segment's younger audience.
• Adults aged 25 to 44 are the largest single age cohort for Disney+ users.
• The DTC segment reported operating income of $352 million in Q4 2025.
• The Experiences segment Q4 2025 operating income was $1.88 billion.

Finance: draft the Q1 2026 customer acquisition cost projection by Friday.

The Walt Disney Company (DIS) - Canvas Business Model: Cost Structure

The Cost Structure for The Walt Disney Company is heavily weighted toward content creation and capital-intensive physical assets, reflecting its dual nature as a media conglomerate and an experiences provider. You'll see significant fixed costs dominating the outlay.

High fixed costs for content investment, projected at $24 billion for FY2026

The Walt Disney Company expects its content investment to remain a massive fixed cost driver. For fiscal year 2026, the projection is to invest approximately $24 billion across Entertainment and Sports. This is an increase of $1 billion compared to the fiscal year 2025 content spend, which was $23 billion. For context, this 2026 projection is still below the peak spending of $33 billion seen in fiscal year 2022. The CFO noted that this 2026 budget is expected to be split roughly 50-50 between sports and entertainment content.

Significant capital expenditures for park expansion, with $9 billion planned for FY2026

Capital expenditures are substantial, driven by the long-term plan to invest roughly $60 billion in the Parks, Experiences and Products segment over the next decade. Specifically for fiscal year 2026, The Walt Disney Company anticipates $9 billion in capital expenditures. This reflects the ongoing commitment to expanding and enhancing domestic and international parks and cruise line capacity, building on the plan to spend $17 billion across FY2025 and FY2026 on the Orlando resort expansion and new cruise ships.

Programming and production costs for live sports rights (e.g., NBA, NFL)

Sports rights are a major component of the content budget, with costs rising due to contractual escalations. The new 11-year TV rights deal for the NBA, which started this year, will see The Walt Disney Company pay approximately $2.6 billion annually. Higher programming and production costs in Q3 fiscal 2025 were explicitly attributed to contractual rate increases for the NBA and college sports. Furthermore, Q2 fiscal 2025 costs reflected airing three additional College Football Playoff games and an additional NFL game compared to the prior year.

You can see how these rights costs impact segment results:

Marketing, selling, and administrative expenses

Selling, General & Administrative (SG&A) expenses represent a significant operating cost outside of direct content and capital spending. For the twelve months ending September 30, 2025, SG&A expenses were reported at $16.501 billion, which was a 4.71% increase year-over-year from 2024's annual figure of $15.759 billion. Looking at quarterly data closer to the end of the fiscal year, the Selling and Administration Expenses for the fiscal quarter ending in September of 2025 were $4.45 billion.

Technology and infrastructure costs for the defintely growing DTC platforms

As The Walt Disney Company pushes its Direct-to-Consumer (DTC) platforms toward profitability, technology investment remains a key cost. Margin gains in the streaming business are being driven by revenue growth and operating leverage, not further content or SG&A reductions, which implies sustained tech spending. You saw in Q2 fiscal 2025 that the DTC operating income growth was partially offset by higher technology and distribution costs. Similarly, Q4 fiscal 2025 results noted that the increase in DTC operating income was partially offset by higher programming/production, marketing, and technology and distribution costs.

The focus here is on building a unified, AI-enhanced app ecosystem, which requires ongoing investment in product development.

• DTC Operating Income (FY2025 Full Year): $1.3 billion
• DTC Operating Income (Q2 FY2025): $336 million
• DTC Operating Income (Q3 FY2025): $346 million
• DTC Operating Income (Q4 FY2025): $352 million

The Walt Disney Company (DIS) - Canvas Business Model: Revenue Streams

You're looking at The Walt Disney Company's revenue generation engine as of late 2025. It's a complex mix, but the numbers tell a clear story about where the profit is landing this fiscal year.

The Experiences segment, which covers the parks, resorts, and cruise lines, delivered a record full year segment operating income of $10.0 billion in fiscal 2025. This performance was up 8% compared to the prior year, showing the enduring appeal of those physical destinations. Also, the company generated $18 billion in cash provided by operations for the full fiscal year 2025, with free cash flow reaching $10 billion.

For the digital side, the Direct-to-Consumer (DTC) business, encompassing subscription fees and advertising revenue across services like Disney+ and Hulu, achieved an operating income of $1.3 billion in FY2025. This represents a significant turnaround, an increase of $1.2 billion compared to fiscal 2024. The Entertainment segment overall, which houses DTC, saw its full year segment operating income increase 19% to $4.7 billion.

Here's a quick look at the operating income contribution from the major segments for the full fiscal year 2025:

Theatrical box office receipts and home entertainment sales are bundled within the Entertainment segment results, which benefited from strong film slate performance in the first half of the year. For instance, Q1 fiscal 2025 operating income for Entertainment hit $1.7 billion, driven by that strong box office. Still, the fourth quarter saw a decrease of $376 million in Entertainment segment operating income compared to the prior-year quarter, largely due to theatrical slate comparisons.

Content sales and licensing to third-party platforms and networks also feed into the Entertainment segment's profitability. Content Sales/Licensing and Other operating income increased by $536 million in Q1 fiscal 2025, for example, driven by the performance of Moana 2. Honestly, isolating the exact FY2025 total for this stream alone is tricky, as it's reported alongside other Entertainment activities.

Consumer Products sales and licensing royalties are a component of the overall revenue picture, contributing to the total revenue of $94.4 billion for fiscal 2025. While specific royalty amounts aren't broken out separately in the top-line segment reporting, the strength of the overall portfolio supports the company's brand monetization efforts. You can see the overall strength in the total segment operating income, which grew 12% for the year to $17.6 billion.

The revenue mix is clearly shifting, with key drivers being:

• Strong, high-margin performance from the Experiences segment.
• The return to profitability in the Direct-to-Consumer streaming business.
• Revenue from major film releases flowing through the Entertainment segment.
• Advertising revenue growth in the Sports segment, with domestic ESPN advertising revenue up 8% in Q4 fiscal 2025 versus the prior-year quarter.

Finance: draft the Q1 FY2026 revenue projection based on the FY2025 actuals by Friday.