New Disney CEO Josh D’Amaro confirmed that the media giant is exploring “a free product for consumers,” i.e. FAST channels.
“We’re exploring a free product for consumers. One that will allow us to accomplish several goals and hopefully do that efficiently,” he said on a call with analysts after quarterly earnings. “First, we see it as a way to expand our reach to a customer segment that’s more price sensitive.
“Second, unlike a lot of our AVOD competitors were fairly well sold, meaning more inventory would actually help us accelerate our ad revenue growth. And … a free offering could help us drive top of funnel Disney+ subscriber growth. So, nothing specific to announce today, but definitely something that we’re considering.”
The Q&A with analysts ranged across Disney’s business from streaming and parks to spending and costs. CFO Hugh Johnston said on the call that Disney is on track for about $24 billion in content spending this year, which is “up modestly” from FY25.
Watch on Deadline
“We plan to grow content spending from the current levels over time,” he said, noting that international, in particular, is “an opportunity where we think we can make a difference.”
At the same time, he said, “We’re highly focused on operating with speed and agility, and improving productivity and efficiency across the company, so we can invest in accelerating growth. I will tell you that this work is ongoing as we look at meaningful reductions to cost. including labor and SG&A, and we’ll update you on progress as we move forward.”
Disney cut several hundred jobs last month after a prior round of layoffs earlier this year.
Johnston said the company is also focused on shareholder returns through its semi-annual dividend, which has been increasing, and a large share repurchase program. That has risen to an anticipated $9 billion for fiscal 2026 using cash that had been set aside for Disney’s now scrapped $1 billion investment in OpenAI, and $1.2 billion expected from its just announced A&E transaction.
More to come
