Disney to Boost Spending on Film and TV In Markets Outside the U.S. to Grow Streaming Subscribers

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Disney CEO Bob Iger hints at expanding the production of unique, locally and regionally-focused content abroad to fuel the growth of their global streaming services.

Investing in content beyond the U.S., which is crucial as it requires increased investment in local content, is one of the key elements driving our growth,” Iger explained during a morning meeting with analysts following the publication of Disney’s Q2 earnings report.

Following the debut of Disney+ in 2019, Walt Disney has been expanding its streaming service into international markets. In line with their content strategy, Iger noted that Disney is actively increasing its presence in specific foreign markets.

To enhance services like Disney+ and other streaming platforms, Disney previously broadened the supply of local and regional content to foster its worldwide direct-to-consumer business. In a report filed in February, Disney projected they would invest around $23 billion on creating and acquiring content, including sports rights, during their fiscal year.

Discussions about enhancing content production abroad come in the wake of President Donald Trump’s unexpected suggestion to impose tariffs on movies produced outside the US. Trump’s representative from Hollywood, Jon Voight, unveiled a strategy on May 5th, which emphasized federal tax incentives, modifications to the tax code, negotiating co-production treaties, and providing subsidies for infrastructure within the American film industry.

International film and streaming companies reap advantages such as substantial tax reductions and various production incentives when they create content abroad.

Strengthening global content creation for their direct-to-consumer service is a strategy that U.S. industries are adopting, as they ponder ways to earn steady and scalable streaming revenues to compete effectively with the market leader, Netflix.

In the second quarter, Disney’s streaming service resumed gaining subscribers, a turnaround from losing 700,000 in the previous quarter. The company managed to add an impressive 1.4 million new subscribers in this latest period, taking their total number of Disney+ subscribers up to 126 million. Meanwhile, Disney’s entertainment division reported a revenue of $10.7 billion, marking a 9% increase compared to the same time last year.

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2025-05-07 16:24