Disney’s New Strategy: Exploring FAST Channels
New Disney CEO Josh D’Amaro has confirmed that the media giant is exploring the possibility of introducing a free product for consumers, known as FAST channels.
In a recent call with analysts after quarterly earnings, D’Amaro stated that the company is considering a free offering that would allow them to expand their reach to a customer segment that is more price-sensitive.
According to D’Amaro, a free product would also help accelerate ad revenue growth and drive top-of-funnel Disney+ subscriber growth.
FAST channels refer to free, ad-supported streaming services that offer a range of content, including movies, TV shows, and original programming.
Disney’s move to explore FAST channels comes as the company continues to navigate the changing landscape of the media and entertainment industry.
The move is seen as a strategic effort to expand Disney’s reach and increase its competitiveness in the market.
Content Spending: A Key Area of Focus
Disney’s CFO, Hugh Johnston, also discussed the company’s content spending during the call with analysts.
According to Johnston, Disney is on track to spend around $24 billion on content this year, which is an increase of modest levels from the previous fiscal year.
Johnston emphasized that the company plans to grow content spending over time, with a focus on international markets, where Disney sees opportunities for growth.
The company’s content spending is a key area of focus, as it aims to produce high-quality content that appeals to a diverse range of audiences.
Cost-Cutting Measures: A Key Priority
Disney is also focused on reducing costs and improving productivity and efficiency across the company.
According to Johnston, the company is working on meaningful reductions to costs, including labor and SG&A (Selling, General, and Administrative) expenses.
The company has already implemented several rounds of layoffs in recent months, with several hundred jobs cut last month alone.
Disney’s cost-cutting measures are aimed at improving the company’s bottom line and increasing its competitiveness in the market.
The company’s semi-annual dividend has been increasing, and a large share repurchase program has risen to an anticipated $9 billion for fiscal 2026, using cash that had been set aside for Disney’s now scrapped $1 billion investment in OpenAI, and $1.2 billion expected from its just-announced A&E transaction.
