The Walt Disney Company has made a surprising–and somewhat jarring–declaration about the state of streaming, despite reporting a recent uptick in Disney+ subscriptions and earnings. In a shifting landscape where digital content is both thriving and under scrutiny, Disney’s internal commentary reveals a more cautious corporate outlook than one might expect.
The Streaming Landscape: Up, But Under Pressure
Disney+ continues to serve as the flagship streaming platform for the company’s massive content library, housing everything from Star Wars and the Marvel Cinematic Universe to animated hits and live-action originals. And according to recent financial reports, the platform has been holding its own.
“The firm reported stronger than expected earnings in May, with overall revenue of $23.6bn for the first three months of the year. That was a 7% increase from the same period in 2024,” noted the BBC. “It said the growth was fuelled by new subscribers to its Disney+ streaming service.”
Variety echoed this optimistic outlook: “Operating profit in Disney’s streaming business jumped for the first three months of 2025, as Disney+ unexpectedly added 1.4 million subscribers in the quarter.” As of May 2025, Disney+ boasts a global subscriber count of around 126 million.
But beneath the growth lies deeper financial tension, particularly as Disney grapples with balancing streaming profits and production costs.
Blockbusters, Original Series, and Franchise Fatigue
While Moana 2 (2024) arrived on the service with strong momentum after a billion-dollar box office run, other recent additions have been met with less enthusiasm. Captain America: Brave New World (2025) made its streaming debut following mixed reception at the box office, and from June 11, the controversial Disney’s Snow White (2025) will also arrive on Disney+.
Disney+ has also leaned heavily into original content from its key creative arms—Marvel Studios, Lucasfilm, Pixar, and Disney Animation. Standouts include the wildly successful The Mandalorian, which helped define Disney+ in its early days, and the highly praised Andor, which wrapped its second and final season this year.
“Streaming Is Dead”: A Stark Internal Sentiment
Andor creator Tony Gilroy shed light on the streaming platform’s creative dynamics—and Disney’s financial hesitations—in a recent interview with Comic Book.
“I mean, for Disney, this is $650 million. For 24 episodes, I never took a note. We said ‘F-ck the Empire’ in the first season, and they said, ‘Can you please not do that?’” Gilroy shared. “In Season 2, they said, ‘Streaming is dead, we don’t have the money we had before,’ so we fought hard about money, but they never cleaned anything up. That [freedom] comes with responsibilities.”
The blunt phrase–“Streaming is dead”–caught attention across social media and fan forums, where many debated its implications.
On Reddit, user ButterscotchExactly weighed in: “It doesn’t seem dead to me, but it does seem like it has come to a point where people cycle what services they use because there are so many, and they keep raising prices. Disney was one we got rid of just because they don’t put out a lot of content we are interested in, compared to all the others. Easier to just grab it for a month every now and then.”
Cutbacks, Layoffs, and Content Control
In an effort to rein in spending, Disney has implemented a series of moves to restructure its streaming model. These include password-sharing crackdowns (mirroring Netflix), introducing ad-supported tiers, trimming library content, and even controversial cost-cutting under CEO Bob Iger’s leadership.
Iger’s widely criticized 2023 content purge was an early indicator of the company’s changing priorities. The theatrical side of the business has also felt the impact, with audiences often opting to wait for digital releases. Case in point: Disney’s 100th anniversary animated feature, Wish (2023), struggled at the box office but became a major success on streaming, amassing 13.2 million views in its first five days on Disney+ and ranking as the third-most-watched Disney Animation premiere.
These developments come alongside new rounds of layoffs across Disney’s film, TV, finance, marketing, and casting departments. While Disney emphasized a “surgical” approach, no team will be immune to cuts.
What Does the Future Hold for Disney+?
Despite record viewership numbers and ongoing investment in content, Disney’s internal language paints a more conservative picture of the future. As Gilroy’s comments suggest, creative freedom might persist, but financial flexibility may be waning.
How do you feel about Disney’s statement that “streaming is dead”? Let us know in the comments.
