Disney Plans Big Content Spending Increase in 2026

Disney is planning to spend more on content in fiscal 2026 than it did this year. The company expects to invest $24 billion across entertainment and sports, up from $23 billion in fiscal 2025, according to CFO Hugh Johnston.

Johnston spoke about the company’s content plans at the Wells Fargo Technology, Media, and Telecom Summit in Rancho Palos Verdes, California.

The $24 billion budget is roughly split between ESPN sports content and entertainment projects. Johnston said the split will likely remain the same, though spending on entertainment “may grow a little faster than sports.”

He also said Disney plans to increase investment in local content in some markets. “We have rights to succeed with respect to Disney content, but we need to supplement that with local content. So the strategy is very much to do that,” Johnston explained.

Although content spending will grow, it won’t reach the high levels seen during the peak of the streaming wars. Disney had planned to spend $33 billion on content in fiscal 2022, but Johnston said the company and others were “overproducing” and “weren’t happy” with the quality of some releases at the time.

Disney is confident about its financial outlook despite the slower content growth. In its fiscal fourth-quarter 2025 results, the company said it expects double-digit growth in earnings per share over the next two years.

For fiscal 2026, Disney forecasts a 10% operating margin for Disney+ and Hulu, supported by streaming growth and recent price increases. The entertainment segment overall is expected to deliver double-digit operating income growth, “weighted to the second half of the year.”

Disney’s streaming performance was strong in the September quarter. Disney+ added 3.8 million subscribers, while Hulu gained 8.6 million, helped by promotional pricing on the ESPN Unlimited/Disney+/Hulu bundle and the expansion of Hulu’s distribution deal with Charter to include the service with Spectrum TV Select.

Streaming revenue increased 8% to $6.25 billion, and operating income rose 39% to $352 million. This will be the last quarter Disney reports subscriber numbers publicly, following the approach of Netflix.

Have something to add? Let us know in the comments!