Imagine a media giant like Disney hitting a home run in the streaming world, even as political storms brew around one of its stars—that's the exciting yet tricky story we're diving into today. Despite some heated backlash, Disney+ and Hulu pulled off remarkable subscriber gains that exceeded everyone's predictions. But here's where it gets controversial: Could a celebrity's off-the-cuff remarks really sway millions of viewers, or is this just a blip in the grand scheme of entertainment? Stick with us as we unpack the details, and you might find yourself questioning if loyalty to a brand trumps personal politics. And this is the part most people miss: How Disney is pivoting its entire streaming strategy in ways that could redefine how we consume content forever.
Disney wrapped up its fiscal year 2025 on an undeniably upbeat note in the streaming department, showcasing robust quarterly subscriber growth for Disney+ and Hulu. This marks the last time the entertainment powerhouse will share specific subscriber numbers for these services, as they've decided to shift focus elsewhere. On top of that, they saw a whopping 39% uptick in their direct-to-consumer operating income, proving that streaming isn't just a side show—it's becoming the main event.
As of September 27, the combined tally for Disney+ and Hulu subscriptions reached an impressive 195.7 million, up by 12.4 million over the previous three months. That's not just growth; it blew past Wall Street's forecasts by a solid 2.1 million. Breaking it down, Disney+ alone added 3.8 million subscribers, bringing its total to 131.6 million. In the U.S. and Canada, the net gain was 1.5 million, pushing the regional count to 59.3 million. What fueled these sign-ups? Well, the September 3 debut of the live-action remake of 'Lilo & Stitch' on Disney+ played a huge role—it was a blockbuster hit at the box office too. For context, this classic tale of a girl and her alien best friend resonated so strongly that it racked up 14.3 million views in just its first five days on the platform, making it the second-most watched live-action premiere ever on Disney+, right behind 2023's 'The Little Mermaid,' which had 16 million views in the same timeframe.
Disney also spotlighted 'Alien: Earth' as the biggest premiere ever for FX content on Disney+ and Hulu, highlighting the diverse lineup drawing in viewers. Meanwhile, Hulu scooped up 8.6 million new subscribers, largely thanks to Disney's beefed-up partnership with Charter. This expanded deal lets all of Charter's Spectrum TV Select customers access the ad-supported version of Hulu at no extra cost, effectively bundling it into their packages. Just a quick note for beginners: Disney's subscriber counts include folks who get access through these wholesale agreements, even if they don't actively use the service—think of it as potential viewers rather than guaranteed watchers.
Some experts had predicted Disney+ subscriber growth might stall this quarter, especially amid a flurry of threats to cancel subscriptions. The spark? ABC's brief suspension of Jimmy Kimmel's late-night show in September, triggered by his on-air jabs at 'the MAGA gang' for allegedly exploiting the murder of Charlie Kirk for political gain. On top of that, conservative viewers voiced their disapproval by ditching Disney's streaming services in protest. Cancellation rates for Disney+ and Hulu did spike, doubling in September compared to the previous two months, as reported by the independent measurement firm Antenna. Yet, intriguingly, new sign-ups kept flowing in for both platforms, suggesting that while some were tuning out, others were tuning in even stronger.
But here's where it gets controversial: Is a TV host's opinion enough to make fans rethink their streaming habits, or does it reveal deeper divides in how we view entertainment and politics? And this is the part most people miss: Despite the drama, the overall numbers show resilience, raising questions about whether such controversies are more bark than bite in the long run.
Shifting gears, Disney announced price bumps for most Disney+ and Hulu plans and bundles on September 23, effective October 21—marking their third increase in as many years. For those new to this, price hikes can sometimes lead to more churn, and indeed, subscriber drop-offs due to these higher fees might ramp up in the upcoming quarter. On the flip side, Disney is actively blending Disney+ and Hulu into one seamless experience. After finalizing their full takeover of Hulu from Comcast in June, they're rolling out integrated features. Looking ahead to 2026, the company plans to fully merge Hulu into Disney+ under a single app and service, though standalone options will remain available for those who prefer them. Additionally, Hulu recently swapped out its Star branding for a global entertainment focus outside the U.S., streamlining its offerings.
For the September quarter, streaming stood out as the shining star in Disney's entertainment division, even as linear TV and theatrical revenues dipped along with operating income. Direct-to-consumer revenue climbed 8% to $6.25 billion, while operating income surged 39% to $352 million. These figures don't include Disney's recent acquisition of Fubo, which closed on October 29 and is being integrated with Hulu's live TV service—think of it as adding more channels to your cable bundle without the hassle.
As Disney previously disclosed, they're stepping away from reporting paid subscriber counts or average revenue per unit (ARPU—for beginners, that's basically the average money earned per subscriber per month) for Disney+ and Hulu after this quarter. They argue these metrics are losing relevance for assessing business health, following in Netflix's footsteps, which ditched the practice early in 2025. To give you a snapshot, Disney+ domestic ARPU held steady at $8.09 per month sequentially in the September quarter. Hulu's ARPU for its video-on-demand tiers fell 2% quarter-over-quarter to $12.20 per month, partly due to reduced wholesale rates in that Charter agreement.
Disney has also stopped tracking streaming subscribers for ESPN, with its last update showing 24.1 million for ESPN+ (now rebranded as ESPN Select) at the end of the June quarter. In August, they launched ESPN Unlimited, a $29.99 monthly standalone service that bundles everything from ESPN's networks for the first time, aiming to appeal to sports fans seeking comprehensive access without extra fees.
So, what do you think? Does a single controversy like Kimmel's really have the power to dent a behemoth like Disney's streaming empire, or are viewers more forgiving than we assume? And could Disney's shift away from subscriber reporting be a smart move to focus on quality over quantity, or does it hide potential weaknesses? We'd love to hear your take in the comments—agree, disagree, or share your own experiences. Is loyalty to entertainment brands blind to politics, or are we seeing the rise of 'cancel culture' in action? Let's discuss!
