ESPN swallowing NFL RedZone, Hulu getting integrated, and Wrestlemania: Disney’s big streaming swings, explained
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Disney is building a "unified app experience featuring branded and general entertainment, news, and sports resulting in a one-of-a-kind entertainment destination for subscribers."
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August 6, 2025
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Finance·Fortune IntelligenceESPN swallowing NFL RedZone, Hulu getting integrated, and Wrestlemania: Disney’s big ing swings, explainedBy Nick LichtenbergBy Nick LichtenbergFortune Intelligence EditorNick LichtenbergFortune Intelligence EditorNick Lichtenberg is Fortune Intelligence editor and was formerly Fortune's executive editor of global news.SEE FULL BIO Disney CEO Bob Iger.Michael Buckner/Variety via Getty ImagesThe ing wars entered yet another new iteration on Wednesday as Disney announced a major change to the division that it calls direct-to-consumer: Disney+ will integrate Hulu’s operations, transforming into something that looks a lot the old linear TV bundle
As CEO Bob Iger told investors on the company’s third-quarter earnings call, “combining Hulu into Disney plus [will] create a unified app experience featuring branded and general entertainment, news, and sports resulting in a one of a kind entertainment destination for rs.” The night before Disney released its third-quarter earnings, the company confirmed it had struck a deal with its long-time partner in sports, the National Football League, an asset and equity swap that sees the NFL getting a 10% stake in Disney’s ESPN division and ESPN/Disney acquiring several ing assets from the NFL
The NFL’s 10% stake in ESPN is valued between $2 billion and $3 billion, per estimates from Octagon
ESPN will gain the rights to three additional NFL games per season, previously broadcast by the NFL’s own networks, meaning more of America’s highest-rated TV show, football, will be Disney’s as the company fortifies its ing war chest
Disney has been reconstructing ESPN to survive the decline of linear TV with the launch of a standalone ing service, and it will now plug in content beloved by football fanatics: the NFL Network, NFL RedZone distribution rights, and NFL Fantasy Football
In ing, Netflix and Amazon have each acquired more NFL rights over recent years, so Disney’s move shows its playing defense and some offense, too, on this front
Disney also announced an expanded agreement with the WWE, another recent Netflix partner, which subsequently emerged as a $1.6 billion deal that will make Disney the of the marquee event, Wrestlemania
Iger said on the earnings call that ESPN “will be the exclusive for WWE Premium Events, further expanding ESPN’s rights portfolio.” On Disney’s plans in this area, Iger added Disney is “building ESPN into the preeminent digital sports platform with our highly anticipated direct to consumer sports offering.” Disney revealed in its earnings that the sports division, anchored by ESPN, saw revenue fall 5% to $4.3 billion, mainly because of higher NBA and college-sports rights fees
Segment fit, however, soared 29% to $1 billion as a merger in its Indian unit took some losses off its balance sheet. ing fitable amid linear TV, movie studio decline Overall, third-quarter earnings showed resilience in key segments for Disney such as ing and theme parks, even as its traditional TV and film studio divisions showed fatigue
Total revenue for the quarter ending June 28 rose 2% year-over-year to $23.7 billion, just under Wall Street forecasts, while adjusted earnings per climbed 16% to $1.61, surpassing analyst expectations of $1.47
Net income before taxes rose 4% to $3.2 billion
A headline achievement for Disney was the solid performance of its ing , which posted a 6% revenue increase to $6.2 billion and achieved operating fit of $346 million—a substantial turnaround from a $19 million loss reported in the same quarter last year. r metrics reflected steady gains, with Disney+ ticking up 1% quarter-over-quarter for a total of 128 million and Hulu by the same margin to 55.5 million rs
The combined Disney+ and Hulu r base climbed to 183 million, up 2.6 million versus the previous quarter
Disney also finalized its acquisition of the remaining stake in Hulu from Comcast/NBCUniversal in June, setting the stage for a tighter integration of its ing brands later this year
Meanwhile, Disney’s studio entertainment segment saw a more modest 1% revenue growth to $10.7 billion, weighed down by a 15% drop in operating income to $1 billion
Theatrical releases, including original animated and -action remakes, underperformed compared to last year’s strong box-office showing with “Inside Out 2.” Additionally, Disney’s linear TV networks, including ABC and Disney Channel, recorded a 15% year-over-year decline in revenue to $2.3 billion, underscoring challenges from cord-cutting and lower international results ing the Star India deal
Looking ahead, Disney expects total subscriptions for Disney+ and Hulu to rise by over 10 million in the next quarter, driven in part by an expanded agreement with Charter Communications
Theme parks and experiences shine Disney’s “Experiences” segment—which covers theme parks, cruise lines, and consumer ducts—dered robust numbers, outstripping earlier forecasts
Q3 revenue increased 8% year-over-year to $9.1 billion, fueled by a 22% surge in operating income at domestic parks and experiences to $1.7 billion
Disney pointed to strong guest spending and higher occupancy rates in its parks and cruise lines, especially at Walt Disney World, despite the highly anticipated opening of competitor Universal’s Epic Universe in Orlando
Executives emphasized the “continued resilience” of Disney’s park in the face of new competition
Guidance raised, optimism for 2025 Notably, Disney raised its guidance for fiscal 2025, jecting adjusted earnings of $5.85 per —an 18% increase over the prior year
The company also anticipates double-digit segment operating income growth in entertainment and sports, with an 8% gain in experiences for the full year
CEO Bob Iger affirmed Disney’s commitment to global expansion, noting more active park expansions than at any time in Disney’s history and highlighting strategic investments in ing, theme parks, and sports as drivers for future growth. “Disney is not done building, and we are excited for the future,” Iger said ing the earnings release
For this story, Fortune used generative AI to help with an initial draft
An editor verified the accuracy of the information before publishing
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