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Disney (DIS) reported first quarter earnings that beat Wall Street's expectations, with profit in its streaming business amid challenges with its parks segment.
Disney CFO Hugh Johnston sits down with Yahoo Finance Executive Editor Brian Sozzi to discuss the results and what they mean for the media giant going forward.
"We're doing a nice job of eliminating unnecessary cost and, at the same time, investing back in the business in all of the right ways," Johnston says.
Amid the media giant's shift from linear networks to streaming, Johnston notes, "The linear networks in streaming are in many ways two sides of a coin because a lot of the content that we produce actually winds up in both locations. So, in many ways, we've kind of perfectly hedged the business."
"So much of what we do is integrated in so many ways," the CFO explains. "Given we have almost 180 million subscribers, we've really achieved a level where the streaming business is a terrific business unto itself, and because of the integration with linear, I think we can make it better than what other people can because we can produce content that cuts across both distribution channels."
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Netflix (NFLX) has staked its claim as an early streaming giant. The company reported better-than-expected results and raised its 2025 outlook.
Johnston says, "Netflix obviously had a big quarter in terms of content, both with some of the sports activities and some distribution deals they had done outside the US, but from our perspective, we're managing the business in a way where we're trying to grow subs, and we're trying to improve margins at the same time, and we're very much on track — in fact, if anything, slightly ahead — in terms of achieving both of those goals."
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This post was written by Naomi Buchanan.