Disney Integrates Hulu and Expands NFL, WWE Deals to Bolster Streaming Strategy

Disney is redefining its streaming strategy with a series of strategic moves aimed at strengthening its position in the competitive streaming landscape. At the core of the company's recent announcement is the integration of Hulu into the Disney+ platform, a transformation that merges general entertainment, news, and sports under one digital umbrella. This move, described by CEO Bob Iger as creating a “one of a kind entertainment destination for subscribers,” reflects Disney’s effort to streamline its direct-to-consumer offerings and enhance user experience [1].

Simultaneously, Disney has expanded its deep-rooted partnership with the National Football League (NFL) through an asset and equity swap. The deal grants the NFL a 10% stake in the ESPN division, estimated to be valued between $2 billion and $3 billion by Octagon. In return, Disney gains additional streaming assets, including the rights to three more NFL games per season, as well as the NFL Network, NFL RedZone, and NFL Fantasy Football. This deal underscores Disney’s commitment to expanding its sports content, a key driver in its streaming strategy [1].

Another notable partnership is with the WWE, which has recently been a streaming partner of Netflix. Disney has signed a $1.6 billion deal to become the exclusive home for WWE Premium Live Events, including the marquee event WrestleMania. This agreement aligns with Disney’s broader goal of building ESPN into a “preeminent digital sports platform,” as highlighted by Iger on the earnings call [1].

The third-quarter earnings report from Disney highlights the financial rationale behind these strategic moves. While the sports division, led by ESPN, saw a 5% drop in revenue, driven by higher rights fees for NBA and college sports, segment profit surged by 29% to $1 billion, partly due to the restructuring of its Indian unit [1]. The streaming business demonstrated resilience with a 6% revenue increase to $6.2 billion and an operating profit of $346 million, a stark turnaround from a $19 million loss a year ago. Subscriber growth was also notable, with Disney+ and Hulu collectively adding 2.6 million subscribers, reaching 183 million [1].

In contrast, Disney’s traditional TV and film studio segments showed signs of fatigue. The studio entertainment segment saw a 15% drop in operating income to $1 billion, with theatrical releases underperforming compared to the previous year’s success with “Inside Out 2.” The linear TV networks, including ABC and Disney Channel, also experienced a 15% year-over-year decline in revenue to $2.3 billion, signaling the ongoing shift away from traditional TV models [1].

Looking ahead, Disney anticipates over 10 million new subscriptions for Disney+ and Hulu in the next quarter, partly fueled by an expanded agreement with Charter Communications. The company’s “Experiences” segment, which includes theme parks and cruise lines, outperformed expectations, with Q3 revenue rising 8% to $9.1 billion, driven by a 22% increase in domestic park operating income to $1.7 billion. This segment continues to demonstrate resilience despite competition from Universal’s new Orlando park, Epic Universe [1].

Disney has also raised its guidance for fiscal 2025, projecting adjusted earnings of $5.85 per share, an 18% increase from the prior year. The company expects double-digit growth in segment operating income for entertainment and sports, along with an 8% gain in the experiences segment for the full year. CEO Bob Iger emphasized Disney’s focus on global expansion and ongoing strategic investments in streaming, theme parks, and sports, positioning the company for sustained growth [1].

The integration of Hulu into Disney+ and the acquisition of new content assets highlight Disney’s proactive approach to the streaming wars. By consolidating its platforms and expanding its sports offerings, Disney is responding to both defensive and offensive challenges posed by competitors like Netflix and Amazon. The move toward a unified app experience and exclusive content partnerships reflects a broader industry trend of content consolidation and platform differentiation [1].

As the streaming landscape continues to evolve, Disney’s ability to adapt its strategy and leverage its sports and entertainment assets will be crucial in maintaining its competitive edge. The company’s recent financial performance suggests that its focus on streaming and theme parks is paying off, even as traditional TV and film revenue declines. With a clear roadmap for growth and a commitment to expanding its direct-to-consumer offerings, Disney appears well-positioned to navigate the ongoing transformation of the entertainment industry [1].

Source: [1] ESPN swallowing NFL RedZone, Hulu getting integrated, and Wrestlemania: Disney’s big streaming swings, explained (https://fortune.com/2025/08/06/disney-earnings-streaming-espn-nfl-hulu-wrestlemania-wwe/)