In the latest wave of earnings reports from entertainment media companies, a clear message has emerged: Hollywood’s relentless pursuit of streaming growth at any cost may finally be coming to an end.
The key takeaway here is the strategic shift away from rapid expansion at “all costs.”
From Disney and Paramount boasting improved streaming margins to AMC Entertainment reaping the benefits of premium cinema and Liberty Media capitalizing on Formula 1, a new industry blueprint is becoming evident. The focus is on these companies embedding themselves into the regular entertainment habits of their audiences. It’s not just about capturing attention; it’s about ensuring that attention becomes a habit.
Consider Disney, which has finally achieved sustainable profitability in its streaming ventures. Disney+ and Hulu have reported a significant leap in operating income, even as the company continues to invest heavily in technology, sports rights, and its iconic theme parks.
Disney’s new priority: Streaming that actually makes money
In the latest quarter, Disney announced revenues of $25.17 billion, with streaming operating income for Disney+ and Hulu jumping 88% year-over-year to reach $582 million out of $5.49 billion in streaming revenue.
Disney’s current strategy appears to focus on maximizing customer value through price increases, advertising, and experiences. Additionally, the company is hinting at a future where an interconnected “super app” ecosystem might thrive. Newly appointed CEO Josh D’Amaro has suggested this could be on the horizon, pledging to analysts that Disney will “embrace technology more aggressively and build a more connected consumer experience, with Disney+ right at the center.”
The bigger priority for Disney now seems to be extracting more value from customers through price hikes, advertising, experiences, and eventually an interconnected “super app” ecosystem that newly appointed CEO Josh D’Amaro has hinted could be coming in the future. Disney, he promised analysts during the company’s most recent earnings presentation, will “embrace technology more aggressively and build a more connected consumer experience, with Disney+ right at the center.”
Paramount and WBD are betting consolidation can rival Netflix
Then there’s Paramount and its growing streaming business. Paramount Skydance reported quarterly revenue of $7.35 billion, while Paramount+ added 700,000 subscribers to reach nearly 80 million worldwide. Its direct-to-consumer unit also hit a $251 million profit.
The Paramount logo, displayed on the water tower at Paramount Studios in Los Angeles.
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The rival it’s in the process of acquiring, Warner Bros. Discovery, also this past week reported $8.89 billion in quarterly revenue — though the company posted a sizable net loss tied largely to one-time merger-related costs and a Netflix breakup fee connected to the pending Paramount merger. That said, WBD’s streaming business is moving in the right direction, with streaming revenue up 9% and global subscribers surpassing 140 million.
“We have strong and accelerating momentum and expect to finish the year with more than 150 million subscribers globally,” WBD CEO David Zaslav said during the company’s earnings call Thursday. “And, more importantly, we’re seeing healthy acceleration in subscriber-related revenue growth, which we expect will pick up real pace in Q2 and through the rest of the year.”
Taken together, the two companies increasingly look like they’re making versions of the same bet: That at this point in the streaming era, the name of the game is about more than trying to out-Netflix Netflix.
AMC is betting movie theaters can become an experience business
AMC Entertainment’s earnings, meanwhile, suggest that the way forward for movie theaters calls for doubling-down on the kinds of experiences that still feel worth leaving the house for.
Personally, I’ve noticed that shift in my own moviegoing habits. After my local theater chain (not AMC) recently upgraded to wider reclining seats, better food, and a generally more polished experience overall, going to the movies has been an activity I’ve found myself doing on a more regular basis. And AMC appears to be benefiting from that same dynamic.
The company just posted its strongest first quarter since before the pandemic, with revenue up 21% to more than $1 billion as attendance rose nearly 14%. AMC is also generating record revenue on a per patron basis from tickets and concessions, a sign that today’s moviegoers are still willing to spend as long as the experience — which includes everything from IMAX screens to Dolby cinema, better food, and upgraded seats — feels premium.
Having great movies to watch also doesn’t hurt. “We could not be more optimistic about the entire 2026 film slate, especially in the second half of 2026, which we believe will see more continued robust growth adding up to a record post-pandemic box office for full year 2026,” AMC CEO Adam Aron told investors during his company’s earnings call.
Liberty Media shows where the entertainment business is headed
Finally, if there was one company this week that crystallized the broader shift happening across entertainment media, it’s arguably Formula 1 owner Liberty Media.
MELBOURNE, AUSTRALIA – MARCH 08: George Russell of Great Britain driving the (63) Mercedes AMG Petronas F1 Team W17 leads Charles Leclerc of Monaco driving the (16) Scuderia Ferrari SF-26 and the rest of the field at the start during the F1 Grand Prix of Australia at Albert Park Grand Prix Circuit on March 08, 2026 in Melbourne, Australia.
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Formula 1 revenue surged 53% during the quarter, while operating income more than doubled. The prestigious international auto racing series increasingly operates as part live event business, part streaming property, and part luxury brand, because the business thinking behind it isn’t just about getting people to watch races.
It’s also about monetizing audience passion from every possible angle — from media rights to sponsorships, merchandise, social engagement, and live experiences.
In many respects, Formula 1 now resembles the kind of all-encompassing entertainment machine Hollywood companies are trying to build around their own franchises, businesses, and intellectual property. Which may ultimately be the biggest takeaway of all from this week’s barrage of entertainment media quarterly earnings.
