Bloomberg Talks: Disney CFO Hugh Johnston Talks Streaming

Date: November 13, 2025
Host: Bloomberg Tech (Ed Ludlow & Caroline Hyde)
Guest: Disney CFO Hugh Johnston

Episode Overview

This Bloomberg Talks episode features an in-depth interview with Disney CFO Hugh Johnston. The conversation covers Disney’s latest quarterly performance, strategic direction for the company’s streaming business, ongoing contract negotiations, ESPN’s streaming strategy, and the timeline for the highly anticipated CEO succession.

Key Discussion Points and Insights

1. Disney’s Fourth Quarter Performance

Timestamp: 00:31 – 02:02

• Quarter Highlights:
  • Disney outperformed Wall Street by $0.06 per share.
  • Strong revenue growth in the experiences/parks segment: 6% revenue, 13% net growth.
  • "Sports did very strongly while we were launching the new DTC product, which is off to a great start." — Hugh Johnston [00:53]
  • Film and linear TV revenue were softer, primarily due to the absence of India’s contribution this year (previously $84 million).
  • EPS (Earnings per Share) up 19% for both the year and as a three-year CAGR.
  • Commitments: Double-digit EPS growth guidance for 2026, doubled share repurchases, and a 50% dividend increase.

2. Streaming Business Profitability and Outlook

Timestamp: 02:02 – 04:32

• Growth Drivers:
  • Streaming profits expected to continue through 2026.
  • Confidence is based on content pipeline and tech investments.
  • Notable upcoming franchises: Zootopia 2, Avatar, Devil Wears Prada 2, Toy Story 5, Moana, and an Avengers movie will all bolster streaming engagement.
  • "We aspire to grow that business double digits along with the double digit margins we expect to achieve this coming year." — Hugh Johnston [03:20]
• Product Innovation:
  • Unified streaming app, improved recommendation engines, and better navigation on DTC (direct-to-consumer) platforms to enhance user experience.
• Short-term Profitability:
  • Q1 2026 streaming operating income expected at $375 million — less than Wall Street projected, due to short-term investments in bundling and technology.
    • "Bundling ultimately is a very profitable thing to invest in... initially, when you do bundling, you're making an investment. But the paybacks on that are going to be tremendous." — Hugh Johnston [03:53]

3. Content Distribution: Disney and YouTube TV Negotiations

Timestamp: 04:32 – 05:32

• Disney is actively negotiating with YouTube TV over content distribution.
• Disney has made an "attractive deal, very much in line with and in a few areas, perhaps better than what we're doing with, with others." — Hugh Johnston [04:52]
• If negotiations fail, Disney content will remain accessible via other providers, with an expectation that consumers will adapt.

4. ESPN Streaming Strategy & Early Performance

Timestamp: 05:32 – 06:29

• ESPN’s new streaming app has been in the market for about five weeks as of quarter’s end.
• Measures of early success:
  • Strong user engagement, especially for features like "SportsCenter for you" and "Discover Sports".
  • 80% of ESPN app subscriptions are part of bundles, which benefits the broader Disney+ ecosystem.
  • “We feel great about it from both perspectives. It’s off to a great start. And what we’ve seen is engagement goes up when people do subscribe to the service.” — Hugh Johnston [06:15]

5. Disney CEO Succession Timeline

Timestamp: 06:29 – 07:08

• Disney’s Board plans to name Bob Iger’s successor as CEO during the first quarter of 2026, before the end of March.
• "The board has been about as transparent as any CEO succession I have ever seen in my long career." — Hugh Johnston [06:43]

Memorable Quotes & Moments

• On streaming growth:
  “We aspire to grow that business double digits along with the double digit margins we expect to achieve this coming year.”
  — Hugh Johnston [03:20]

• On investments in bundling:
  “Bundling ultimately is a very profitable thing to invest in... But initially, when you do bundling, you're making an investment. But the paybacks on that are going to be tremendous.”
  — Hugh Johnston [03:53]

• On CEO succession transparency:
  “The board has been about as transparent as any CEO succession I have ever seen in my long career.”
  — Hugh Johnston [06:43]

Key Timestamps

• 00:53 – Summary of quarterly performance
• 02:22 – Disney’s confidence in streaming profitability
• 03:46 – Why Q1 2026 streaming income is below expectations
• 04:45 – Strategy in negotiations with YouTube TV
• 05:41 – Early results of ESPN streaming app launch
• 06:38 – Timeline for CEO succession announcement

Tone and Closing

Hugh Johnston approaches the conversation with candid optimism, frequently emphasizing Disney’s strong financial momentum, the strategic long-term bets on technology and bundled content, and an upbeat view on the company's leadership transition.
The episode is engaging and forward-looking, avoiding hype but instilling clear confidence in Disney’s evolving digital business and brand strength.