Shares in the Burbank, California-based entertainment giant have fallen more than 40% over the last five years, including a 13% drop in 2026, making streaming performance a critical lever for lifting the stock price, according to Rob Fishman, an analyst at MoffettNathanson.
Fixing the Disney+ Tech Stack and User Experience
Disney+ is introducing new features such as vertical videos and an upgraded recommendation algorithm to close the technological gap with rivals Netflix Inc. and YouTube, according to company statements. For years, Disney’s various streaming services operated on separate technology stacks using different programming languages and databases. To fix this, Bob Iger hired Adam Smith in 2024 as chief product and technology officer for Disney Entertainment and ESPN. Smith and Joe Earley now run Disney’s streaming operations. Smith noted that a recent overhaul is paying off, pointing to Nielsen data showing that Disney streaming services registered their best month of viewership ever in the US in March, with US time spent on Disney+ up 21% from a year ago.
Pro Tip: Integrating Hulu and ESPN content directly into Disney+ allows users to access movies, TV shows, and live sports from a single application, reducing the friction that leads to cancellations.
The Strategy Behind “One Disney” and Content Integration
D’Amaro has instructed leadership to treat Disney+ as the front door for fans worldwide by integrating Hulu and ESPN programming into a single hub. When Disney+ launched in 2019, it was perceived primarily as a platform for families and kids, while Hulu hosted general entertainment and ESPN handled sports. Management is now working to shift that perception. “Disney+ is for everyone,” Joe Earley said. By combining Hulu viewing histories directly into the Disney+ app, the platform delivers personalized recommendations across brands like FX, Marvel, and Pixar. This ecosystem approach has helped keep the US churn rate at 3%, which Antenna data ranks as the second-best in the industry behind Netflix.
Scaling International Markets and Local Programming
International expansion represents the primary growth vector for Disney’s streaming division, according to company executives. While classic Hollywood exports like Marvel and Pixar perform well globally, Dana Walden, Disney’s president and first-ever chief creative officer, noted that expanding local-language programming is essential for capturing foreign markets. Walden has placed Eric Schrier in charge of building out a pipeline of local-language shows, with plans to double the budget for local programming over the next few years alongside bidding for sports rights in Latin America and Australia.
Did You Know? Despite trailing Netflix in total original hits, Disney claims four of the 10 most-watched streaming series in the US—including Bluey and reruns of Family Guy, Bob’s Burgers, and Grey’s Anatomy—largely driven by its broad catalog.
From Multibillion-Dollar Losses to Streaming Profitability
When Bob Iger prioritized streaming after spending over $70 billion to acquire Fox entertainment assets and fund Disney+, the division was hemorrhaging cash. By early 2023, under pressure from activist investor Nelson Peltz, Walden and Alan Bergman cut back on programming, reducing commissioned shows by nearly 50% between 2022 and 2025 according to Ampere Analysis. At the same time, Disney nearly tripled the cost of Disney+ while offering an ad-supported tier. These adjustments successfully converted a $4 billion annual streaming loss into a profit within three years.
Frequently Asked Questions
Who oversees Disney’s streaming operations?
Disney’s streaming services are run jointly by Joe Earley and Adam Smith, who serves as chief product and technology officer for Disney Entertainment and ESPN.
What is the current churn rate for Disney’s streaming bundle?
According to Antenna data, Disney’s US churn or cancellation rate sits at 3%, making it the second-best in the streaming industry behind Netflix.
How much did Disney cut its original programming production?
Driven by leadership changes and cost-cutting measures, Disney reduced the number of shows it commissioned by nearly 50% between 2022 and 2025, according to Ampere Analysis.
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