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Disney Sets $24 Billion FY26 Content Budget, Evenly Split Between Sports and Entertainment

Management says spending will rise only in step with streaming revenue to protect margins.

Overview

  • CFO Hugh Johnston told the Wells Fargo TMT Summit that Disney plans about $24 billion in fiscal 2026 content spend, with roughly half for ESPN and half for entertainment.
  • He said total outlays will not grow faster than direct‑to‑consumer revenue, signaling continued discipline after a $33 billion peak in fiscal 2022.
  • Disney will increase investment in market‑specific local programming to boost engagement and retention in selected international markets.
  • A unified Disney+/Hulu app experience targeted for 2026 is intended to reduce churn by improving the product and consolidating viewing in one place.
  • The company forecast a 10% operating margin for Disney+/Hulu in FY26 after Q4 operating income gains, and it reported a strong early response to ESPN Unlimited and its $29.99 introductory bundle.