Acquired · Monday, August 10, 2026
Disney is undergoing a major transition to streaming with Disney Plus and Hulu, involving significant investments that have resulted in billions in losses over five years. This shift occurs as traditional revenue streams like movie theaters and cable subscriptions (including ESPN) are shrinking.
“They're in the midst of a transition to streaming with Disney Plus and Hulu, and ESPN, making giant technology and marketing investments to support that transition that lost billions for half a decade.”
“And they're doing this while their old, fantastically profitable businesses are fading. Consumers don't really go to the movies like they used to. They don't buy movies on VHS or DVD or Blu-ray, and of course, consumers are also cutting the cords to cancel their cable subscriptions, so those fat profits from cable channels like ESPN are shrinking every year.”