The Walt Disney Company outlined a three-pillar strategy in their Q2 FY26 earnings report, including investing in intellectual property (IP), indicating they remain committed to expanding existing franchises but also “know the importance of taking creative risks to build new ones.”
Investing in IP
Disney is “Investing in IP and creativity that breaks through, builds connections, and endures”. The report went on to say, “Creative excellence has always driven the strength of our brands and franchises, and it continued to deliver meaningful economic value this quarter.”
They cited the sequel Zootopia 2 and the Pixar original Hoppers as examples of successful IPs for the quarter. They also referenced The Mandalorian & Grogu, Toy Story 5, and live-action Moana, which will “strengthen our most strategic asset – our intellectual property – and help fuel our streaming, consumer products, experiences, and games businesses over years and generations.”
Here is more from the report:
The arrival of Zootopia 2 on Disney+ in March is a perfect example of how, when our stories resonate, they generate value across our distribution platforms. Not only did Zootopia 2 generate $1.9 billion in global box office, the Zootopia franchise surpassed 1 billion hours streamed on our service. And that is only one part of the equation, as fans engage with Zootopia’s characters and stories at our theme parks, on our cruise ships, and at retail. In China, where Zootopia 2 became the highest grossing foreign film of all time, Zootopia land remains a strong draw for guests to visit Shanghai Disneyland.
Other streaming highlights in the quarter included the arrival of Predator: Badlands, Disney+’s Hannah Montana 20th Anniversary, Hulu’s Paradise Season 2, and FX’s Love Story: John F. Kennedy Jr. and Carolyn Bessette. Looking ahead, we are excited for the streaming premieres of Avatar: Fire and Ash and Hoppers, as well as the final season of The Bear on Disney+ and Hulu.
We are also focused on driving Disney+ growth outside the U.S. and are seeing early success with local originals, including the popular series Battle of Fates in Korea and Rivals in the U.K., which begins its much anticipated second season May 15.
We are especially excited for the upcoming theatrical releases of The Mandalorian & Grogu, Toy Story 5, and our live-action Moana. Franchise films like these strengthen our most strategic asset – our intellectual property – and help fuel our streaming, consumer products, experiences, and games businesses over years and generations.
Even as we invest in existing franchises, we know the importance of taking creative risks to build new ones. Hoppers, from Pixar, is a strong example of our focus on original IP, and we are pleased with its critical reception and the enthusiasm with which fans have embraced the story and characters.
To execute our creative strategy, we recently unified our Entertainment content businesses under Dana Walden, President and Chief Creative Officer, supporting a cohesive vision across film, television, streaming, and games.
The power of great storytelling is also central to ESPN’s success. We recently enhanced ESPN’s offering, including closing our NFL transaction in January, broadening our relationship with MLB, and bringing CW Sports to the ESPN app for Unlimited plan subscribers. Additionally, users of the ESPN App and DraftKings Sportsbook can now link their accounts allowing us to better serve sports fans with deeper integrations.
Few companies bring creativity to life like Disney. In March we launched our latest ship, the Disney Adventure, and opened the World of Frozen at Disneyland Paris, and guest response has been positive. The World of Frozen is our most recent example of taking franchise IP and translating it into immersive physical experiences that deepen fan affinity and drive attractive economic returns.
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