While intellectual property is the power behind its various revenue streams, it is important to know the source for each of these streams. The company recently reorganized into two primary business segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences, and Products (DPEP).

DMED includes the following assets and divisions:

Linear television networks (ABC network, Disney channels, ESPN, Freeform, FX, National Geographic). Most of its linear networks revenue is derived from affiliate fees and advertising sales. Direct-to-consumer (DTC) streaming services. Disney+ now has 118.1 million subscribers, a 60% increase year over year. Management believes the service can reach 230 to 260 million subscribers by 2024. Disney’s DTC services primarily make money from subscription fees but also derive revenue from Premier Access/pay-per-view fees and advertising.

Disney+Hotstar is a video streaming service with television shows, movies, sports, news, and original series in ten languages available in India, Indonesia, Malaysia, and Thailand. The average revenue per user (ARPU) for Disney+ subscribers is $4.12, but if you exclude Disney+Hotstar subscribers, that figure jumps to $6.24.

ESPN+, which offers live sporting events and on-demand sports content, has 17.1 million subscribers, a 66% increase over 2020’s Q4.

Hulu is a DTC service with 43.8 million subscribers, good for a 20% increase year over year. It should be noted NBCU still owns a 33% stake in Hulu, which Disney will have to purchase in January 2024. Buying out this stake will easily cost Disney upwards of $20 billion to $25 billion.

Content sales and licensing to third parties (theatrical distribution, home entertainment distribution, staging live events, etc.). Most Content Sales/Licensing revenue comes from TV/SVOD, theatrical, and home entertainment distribution. The DPEP segment primarily consists of revenue from its Parks & Experiences division and consumer products.

Parks & Experiences includes theme parks and resorts, cruise lines, and vacation club revenue. This encompasses everything from ticket sales, hotel rooms, and food and merchandise sold on location.

Consumer products revenue comes from licensing its intellectual property to appear on clothing, toys, video games, and other merchandise and its sales of branded products from its online and brick-and-mortar stores.