Five Things We Just Learned About Disney

Bob Iger, the CEO of The Walt Disney Company, just told us a surprising amount.

Here are five things we just learned about Disney.

People Can’t Get Enough of Stitch

The genius of the Disney Flywheel is that it once it starts spinning, it never stops.

In 2002, Disney dumped an unheralded new animated movie on unsuspecting audiences.

Ordinarily, the Disney hype machine shamelessly promotes a film to death.

That didn’t happen with this title, as it had become something of a headache internally.

Nobody quite knew what to do with a story about two sisters and a mischievous alien.                                                                                                                                                                

Something funny happened, though. The movie-goers who gave the film a chance fell head over heels in love with it.

My house is decorated with all the merchandise to prove the point, and there’s no end in sight.

My wife doesn’t even know it yet, but she’ll get several more Stitch toys for Christmas.

So, while Lilo & Stitch, the underpromoted 2002 film, started slow, it developed a loyal audience.

For 20 years, Disney executives underrated the appeal of Stitch, which still blows my mind.

In 2025, we finally got another theatrical release in this franchise.

Not coincidentally, Lilo & Stitch is the top Hollywood blockbuster of 2025.

That’s only a small part of the Disney Flywheel, though, as the movie has always become a hit on streaming.

Iger provided a rare glimpse behind the curtains to confirm the film’s streaming numbers.

“The film achieved 14.3 million views during its first five days on Disney+, becoming the second biggest Disney live-action premiere on the platform ever.”

That’s a direct quote from the earnings call, but it’s not even the most impressive one.

There’s also this: “Retail sales for Stitch from our consumer products business also continues to grow, eclipsing $4 billion in fiscal 2025.”

So, the decision to invest $100 million on a new Lilo & Stitch film has paid shocking dividends.

Disney 4, Everyone Else 0

I’m trying hard not to gloat about the last thing, as I’ve been shouting about the popularity of Stitch for years.

Still, this film is simply just the latest example of Disney’s sustained box office dominance.

No, Disney doesn’t claim the same stronghold over Hollywood as it once did.

Even so, Disney executives pointed out a rather staggering box office fact. It’s this:

“Over the past two years, our studios have delivered four global franchise hits that have earned more than $1 billion each, while no other Hollywood studio has achieved a single one during the same period.”

So, four Hollywood movies in 2024 and 2025 have earned $1 billion, and every one of them is a Disney release.

Disney will finish the year strong with Zootopia 2 and Avatar: Fire and Water, too.

Those are ostensibly the studio’s biggest releases of calendar 2025, saved for the end.

Notably, Disney isn’t emptying the cupboards at the end of the year, though. Here, let them say it:

“Looking ahead, next year’s slate includes numerous highly anticipated titles such as ‘The Devil Wears Prada 2,’ ‘The Mandalorian and Grogu,’ ‘Toy Story 5,’ the live-action ‘Moana,’ and ‘Avengers: Doomsday.'”

Even if you’re understandably skeptical about the Star Wars and Marvel movies, that’s still a potent list.

Obviously, Disney cannot take anything for granted, as its 2023 and 2025 slates looked strong.

The actual results have been a bit disappointing in some instances, but the studio’s doing well overall.

As Disney points out, it’s already crossed $4 billion for this year with its big two releases yet to come.

Also, those new Toy Story 5 and The Devil Wears Prada 2 teasers are exceptional.

I’m nervous to say this after everything the last three years, but Disney’s 2026 lineup should excel.

Their Mind on Their Money, and Their Money on Their Mind

During a media appearance before the earnings call, CFO Hugh Johnston said something.

He noted that when a company commits to a dividend, it’s doing so for the long haul.

That’s important here because Disney announced it would increase its shareholder dividend by 50 percent.

So, if you’re a shareholder like me – I think I own six – you’re getting $1.50 a share from now on!

Of course, Disney won’t be delivering as many dividends moving forward due to a different announcement.

It’s this: “We are targeting $7 billion in share repurchases in 2026, double the $3.5 billion we repurchased in fiscal 2025.”

I reiterate something I said early in the year. This is the Nelson Peltz insurance policy.

During the second activist investor battle, Iger and his team realized something obvious.

Disney has too many outstanding shares right now, and the float has created headaches.

To mitigate this problem, Disney’s engaging in a buyback program where it acquires more of its own stock.

Disney can do this because its free cash flow has reached $10 billion.

MickeyBlog covered the battle over the valuation of Hulu, which ultimately resolved in Disney’s favor.

Had Comcast won billions more in arbitration, Disney probably wouldn’t do this.

Since Disney won that battle, this is the corporate equivalent of playing with house money.

Streaming Is a Non-Issue

This is a weird blanket statement to make with the current Google fight ongoing.

Disney and YouTube TV may have settled by the time you read this, but it’s been a struggle.

This negotiation isn’t accurately described as a streaming battle, though.

Yes, YouTube TV is a skinny bundle streaming service, but it’s based on the outdated cable model.

This is a vestige of the very form of content consumption Disney will eventually abandon.

The real streaming conversation centers on the three components of the Disney Bundle. Disney barely even talked about Disney+ and Hulu during this earnings call because there was no need.

Here’s all the company needed to say:

“At our entertainment segment, our streaming business had another quarter of profit growth, with operating income up 39% in Q4.

For the full year, we hit $1.3 billion in operating income, up $1.2 billion from last year, and $300 million ahead of our original guidance.

That is a significant achievement when you consider that just three years ago, our DTC business was running a $4 billion operating loss.”

That’s the sound of Bob Iger taking a victory lap. He was brought back to Disney to fix streaming.

Voila! Streaming is fixed. Operating income increased by a factor of 11 and finished above guidance.

Three years ago, right about now, streaming was losing $1.4 billion in a quarter and $4 billion in a year.

Iger deserves his flowers for this particular part of the Disney empire.

ESPN Was Doing Great

Still, I’d be remiss if I failed to point out the move that may come back to haunt Iger.

Since the CEO is now 13 months away from retirement, he’s focused on his legacy.

ESPN embodies a vital part of said legacy, as Disney acquired ESPN and Iger in the same deal.

He came over to run Disney’s television operation, among other things, and he’s done so. Brilliantly.

Alas, Iger may be fumbling at the one-yard line due to the Google/YouTube TV standoff.

That’s particularly unfortunate since ESPN had been on a heater lately.

In Disney’s own words, “ratings across ESPN networks, including ESPN on ABC, (finished) the quarter up 25% over the prior year quarter.”

Early data suggests that the loss of those ten million YouTube TV subscribers is hurting ratings.

The information is a bit spotty, as Monday Night Football’s ratings for the Green Bay/Philadelphia game were solid.

However, the previous week’s MNF game and some SEC ratings have dropped noticeably.

Iger was looking like a genius in acquiring all these sports licensing rights.

The feud with Google has slowed ESPN’s momentum, though. Hopefully, it’s just temporary.

Still, the overall picture at Disney is remarkably rosy, although the next few months should prove stagnant.

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Feature Photo: Disney