Observed Signal · Feb 2, 2026 · Earnings Report · Source: AdExchanger · Impact: 4/5 · Sentiment: Negative
Disney Ditches Subscriber Numbers as Iger Prepares to Depart
On an investor earnings call, Disney CEO Bob Iger reviewed the company’s recent streaming turnaround and financial results while declining to address reports he may step down later this year. Disney said its SVOD services grew 11% year-over-year to more than $5 billion last quarter and total company revenue rose 5% to $26 billion for fiscal Q1. SVOD advertising revenue increased 4% to $952 million, sports advertising grew ~10%, but entertainment advertising declined 6% (partly due to prior transactions). Crucially, Disney announced it will no longer report subscriber counts for Disney+ and Hulu going forward. Executives emphasized plans to unify Disney+ and Hulu apps, highlighted a three-year licensing deal with OpenAI’s Sora, and signaled continued focus on bundling and ESPN-driven engagement.
This is an earnings call from a major media owner (Disney) with a material disclosure change — halting subscriber reporting — that reduces transparency for advertisers and analysts and affects streaming/CTV measurement, monetization and competitive dynamics.
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Key Takeaways & Evidence Grounding
- The Wall Street Journal reported Bob Iger will likely step down before his contract expires at year-end.
- Disney’s SVOD services revenue grew 11% year-over-year to more than $5 billion last quarter.
- Total revenue for Disney’s fiscal first quarter increased 5% to $26 billion.
- SVOD advertising revenue rose 4% year-over-year to $952 million.
- Disney said it will no longer report subscriber numbers for Disney+ and Hulu going forward.
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Disney Stops Quarterly Streaming Subscriber Reporting
Disney announced it will stop reporting quarterly subscriber numbers for its streaming services and shift focus toward overall profitability, following Netflix's earlier move. CEO Bob Iger and CFO Hugh Johnston said subscriber counts are "less meaningful" for evaluating the business. The change coincides with a strategic consolidation: the standalone Hulu app will be shut down in 2026 and Hulu content will be merged into Disney+ (with the Hulu brand becoming Disney’s global general entertainment offering). For its last full report, Disney’s streaming segment posted nearly $350 million in profit; Disney+ and Hulu combined had 183 million subscribers and ESPN+ had about 24 million.
Disney CEO Prioritizes Engagement and ESPN
On May 6, 2026, Josh D’Amaro led his first earnings call as Disney’s CEO, emphasizing subscriber engagement and the role of ESPN in Disney’s streaming strategy. Disney reported $25.2 billion in quarterly revenue (up 7% year‑over‑year), with streaming revenue up 13% and Disney Entertainment advertising revenue up 5%. ESPN ad revenue fell 2% YoY while ESPN subscription and affiliate revenue rose 6%. Disney said integrating ESPN and Hulu within Disney+ remains a strategic priority, arguing that separating the hubs into discrete businesses is complex and unlikely to add shareholder value. Executives described operating from a centralized ad tech stack, expanding sports content (including more NFL access and Fubo integration), adding short‑form “Verts” to Disney+, and deploying AI to personalize sports recommendations and ad targeting to boost engagement and reduce churn.
Fired OpenAI Researchers Dispute Misconduct Claims, Warn of Chilling Effect
Three OpenAI safety researchers, Jasmine Wang, Tomek Korbak, and Mikita Balesni, who were fired last week, have published an open letter denying allegations of mishandling sensitive information. They warn that their dismissal creates a chilling effect that stifles AI safety work and open dialogue within the company. The researchers say they acted in good faith and within company norms, and that the reasons for their firing are unclear. They urge OpenAI to uphold its commitments to third-party safety auditors and maintain a transparent culture. OpenAI responded with an internal memo denying retaliation and stating that employees are not terminated for raising concerns, but did not address specific policy violations or circumstances of the dismissal. The dispute highlights tensions between internal safety research and company communication policies at a time when OpenAI faces scrutiny over safety incidents.
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