Disney's Subscription Video Business Moves to Next Growth Stage

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1003 ET - Disney's subscription video on demand business is prioritizing revenue after achieving sustainable profitability, Benchmark analyst Mike Hickey says. The media conglomerate had 13% margins for subscription video on demand in the fiscal third quarter, and management doesn't expect margins to retreat materially or fall below a double-digit percentage, Hickey says. "This represents an incremental shift from providing profitability toward reinvesting to accelerate growth," Hickey says. Life-sports advertising demand also remains strong, while AI, healthcare and political advertising business are performing well.

 

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