Overview
- Disney will spend $24 billion in fiscal 2026, roughly split 50/50 between ESPN/sports and entertainment, with entertainment potentially growing faster.
- The allocation is about $1 billion higher than FY25 but remains well below the ~$33 billion peak when studios were overproducing content.
- Executives say content spending will not outpace direct-to-consumer revenue growth targeted in the double digits, and they see no need for major M&A.
- The company will increase selective local-market programming to supplement globally resonant Disney IP and strengthen engagement and retention.
- Streaming targets include a 10% FY26 operating margin for Disney+ and Hulu, a unified Disney+/Hulu app in 2026 to reduce churn, and early traction for ESPN Unlimited with most customers opting for the three-service bundle.