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Recent media earnings reports point to a strategic shift in Hollywood and adjacent entertainment businesses: companies are moving away from “streaming growth at all costs” toward profitability, monetization of audiences, and more integrated consumer experiences.
Disney’s streaming business has reached sustainably profitable territory, with Disney+ and Hulu posting a sharp increase in operating income while the company continues investing in capital-intensive areas such as technology, sports rights, and theme parks.
In its latest quarterly results, Disney reported revenue of $25.17 billion. Streaming operating income for Disney+ and Hulu rose 88% year-over-year to $582 million, on $5.49 billion in streaming revenue.
Disney’s near-term focus is extracting more value from customers through price increases, advertising, and premium experiences. The company is also signaling an eventual move toward an interconnected “super app” ecosystem. CEO Josh D’Amaro said Disney will “embrace technology more aggressively and build a more connected consumer experience, with Disney+ right at the center.”
Paramount is also leaning into profitability and scale in its streaming operations. Paramount Skydance reported quarterly revenue of $7.35 billion. Paramount+ added 700,000 subscribers to reach nearly 80 million worldwide, and its direct-to-consumer unit generated $251 million in profit.
Warner Bros. Discovery, the rival Paramount is in the process of acquiring, reported $8.89 billion in quarterly revenue. The company posted a net loss largely tied to one-time merger-related costs and a Netflix breakup fee connected to the pending Paramount merger. Despite that, Warner Bros. Discovery’s streaming performance is improving, with streaming revenue up 9% and global subscribers surpassing 140 million.
Warner Bros. Discovery CEO David Zaslav said on the earnings call that the company expects to end the year with more than 150 million subscribers globally and that subscriber-related revenue growth is accelerating, with momentum expected to pick up in Q2 and continue through the rest of the year.
Taken together, the two companies appear to be pursuing a similar strategy: in the streaming era, the objective is increasingly less about out-Netflixing Netflix and more about building durable, profitable scale.
AMC Entertainment’s results suggest that movie theaters can strengthen their business by positioning going to the cinema as an experience rather than a commodity.
AMC reported its strongest first quarter since before the pandemic, with revenue up 21% to more than $1 billion. Attendance rose nearly 14%. The company also generated record per-patron revenue from tickets and concessions, indicating that customers remain willing to spend when the overall experience feels premium.
AMC’s experience offering includes formats and amenities such as IMAX screens and Dolby cinema, along with improved food options and upgraded seats.
AMC CEO Adam Aron told investors that the company is optimistic about the 2026 film slate, particularly the second half of 2026, which it expects will support continued robust growth and contribute to a record post-pandemic box office for full-year 2026.
Formula 1 owner Liberty Media highlights another element of the broader entertainment shift: monetizing audience passion through multiple channels, including live events, streaming, and luxury branding.
Formula 1 revenue surged 53% during the quarter, while operating income more than doubled. The business increasingly functions as a live event platform, a streaming property, and a luxury brand, with monetization extending beyond media rights to include sponsorships, merchandise, social engagement, and live experiences.
In this sense, Formula 1 reflects the direction entertainment companies are pursuing—building comprehensive entertainment ecosystems around franchises, businesses, and intellectual property.
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