Hugh Johnston

Disney got some cash back in its pocket after the OpenAI deal fell apart – but the company still plans to lean into AI.

On Wednesday, Josh D’Amaro led his first earnings call as the new CEO of Disney. The company closed last quarter with $25.2 billion in revenue, a 7% year-over-year increase. Disney Entertainment advertising revenue rose 5% YOY, but ESPN ad revenue was down 2% YOY, although subscription and affiliate revenue was up 6%.

Disney’s Q4 earnings double down on the success of sports streaming content, but the YouTube TV blackout continues.

Ever open the Disney+ app and experience cognitive dissonance when shows like “The Handmaid’s Tale” and “It’s Always Sunny in Philadelphia” appear in the recommendations? Well, expect more of that in the future.

Disney had a good quarter, with revenue on the rise and streaming on the brain. Its DTC division, which houses its streaming business, is also growing and remains profitable.

Last quarter, Disney’s combined streaming portfolio – Disney+, Hulu and ESPN+ – turned a profit for the first time, bringing in $47 million from April through June. It’s quite the bounceback from last year, when Disney’s media and entertainment segment lost $512 million.

Disney is on track for its combined streaming offerings to reach profitability by the end of this year. Continued growth will hinge on bundling its streaming properties and its management of sports media.

Disney is starting off the year with subscriber losses. But the Mouse House says it’s all part of the plan.