WHEN A STUDIO LOSES THE HOLLYWOOD REPORTER: Should Disney Exit the Streaming Business?
The Wells Fargo analyst that, if Sony is getting $1 billion annually from Netflix for its pay-1 movie output deal, Disney could be in line for nearly $4 billion. When pay-2 and Disney’s unmatched library is factored in, licensing revenues could hit $15 billion.
“We don’t think the box office, Experiences, or brand value would suffer if the library were on a competing global streamer,” Cahall writes. “Investors would benefit from a de-risked biz model w/ DIS focused purely on content vs. distribution. Josh D’Amaro may be considering all options.”
The report was making waves Monday, with Disney stock rising by 1.75 percent in early trading.
Of course, such a move would be a stark reversal in strategy, especially given Disney’s relative success compared to its peers. But with tech giants like Amazon, Google and Netflix all secure in their space (though Netflix may be seeing pressure, as we’ve seen recently) and with a potential combined Paramount-Warner Bros. on the horizon, the competitive pressure may only ratchet up, potentially making Disney’s content more valuable as a licensed product than a streaming one.
Probably won’t happen, but Disney will likely look for ways to bilk additional fees out of their subscriber base:
Jim is right – it's not going to happen. However, it's only a matter of time before Disney starts charging to watch a show/movie on Disney+… https://t.co/gvhZwsImyx
— Movieconomics (@movieconomics) July 13, 2026