Amid Employee Layoffs, Disney Says “Streaming Is Dead”

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A surprising comment from The Walt Disney Company has been revealed.Credit: DisneyFrom Star Wars to the Marvel Cinematic Universe to original Disney live-action, Disney+ is the central hub for all things Mouse House. However, new information has come to light that may raise eyebrows–and concerns. But first, how is Disney+ doing in this ever-expanding streaming climate?“The firm reported stronger than expected earnings in May, with overall revenue of $23.6bn for the first three months of the year. That was a 7% increase from the same period in 2024,” said the BBC earlier this year. “It said the growth was fuelled by new subscribers to its Disney+ streaming service.”Credit: DisneyAs Variety stated, “Operating profit in Disney’s streaming business jumped for the first three months of 2025, as Disney+ unexpectedly added 1.4 million subscribers in the quarter.” The Disney+ streaming service has approximately 126 million subscribers as of May 2025.The profitability of Disney+ since its 2019 debut has long been a point of discussion for the House of Mouse. With different offerings in different territories, the global subscriber base has continually shifted up and down. Recently, Disney added its late 2024 billion-dollar blockbuster, Moana 2 (2024), to the catalog, with the more lukewarm and negatively received Captain America: Brave New World (2025) and Disney’s Snow White (2025) also making their way onto the platform.Credit: DisneyDisney+ is not just a place for theatrical releases to go, though. Not at all. Disney+ is the engine for a ton of original releases from Disney’s many subsidiaries. From Marvel Studios to Lucasfilm to Disney Animation and Pixar, the streamer has hosted a plethora of content over its six-year lifespan. Notably, Star Wars was the first franchise to capture audiences with its Pedro Pascal-led The Mandalorian.Speaking of Star Wars, 2025 marked the release of the second (and final) season of Andor. The critically-acclaimed TV show followed the growth of the Rebellion, directly linking in with Rogue One: A Star Wars Story (2026) and Star Wars: Episode IV–A New Hope (1977). Creator Tony Gilroy recently confirmed the massive cost it took to bring Andor to life, but perhaps more interestingly, the writer/director also revealed how Disney felt about streaming.Credit: Lucasfilm“I mean, for Disney, this is $650 million. For 24 episodes, I never took a note. We said ‘F-ck the Empire’ in the first season, and they said, ‘Can you please not do that?’” Gilroy said via Comic Book. “In Season 2, they said, ‘Streaming is dead, we don’t have the money we had before,’ so we fought hard about money, but they never cleaned anything up. That [freedom] comes with responsibilities.”“Streaming is dead” is an interesting choice of words from Disney, especially as it continues announcing and releasing new content. The conversation spilled over into Reddit, where user ButterscotchExactly noted that the oversaturation of content on streaming services could be why retention and viewership are not solid.Credit: Disney“It doesn’t seem dead to me, but it does seem like it has come to a point where people cycle what services they use because there are so many, and they keep raising prices,” the comment reads. “Disney was one we got rid of just because they don’t put out a lot of content we are interested in, compared to all the others. Easier to just grab it for a month every now and then.”Comment byu/MrShadowKing2020 from discussion intelevision Over the last few years, The Walt Disney Company has attempted to wrangle its spending on the streaming avenue through multiple tactics. From mergers to a password-sharing crackdown (much like Netflix did), introducing ad tiers and gutting the library to curb costs have all been performed. In fact, Chief Executive Officer Bob Iger’s strict culling of content in 2023 sparked widespread backlash from consumers and creatives.Not only that, but the streaming platform also causes risk to the theatrical slate, whereby some audiences will wait for movies to land on Disney+ instead of spending the dollars to see them in movie theaters. Oftentimes, movies that are not major box office smashes will top the streaming charts upon their streaming release. For example, early last year, Disney’s centennial animated movie, Wish (2023), reached 13.2 million views in its first five days and became the third-most-watched premiere for Disney Animation despite having a labored spell at the box office–the film garnered just $255 million worldwide.Credit: DisneyThese comments regarding streaming come as The Walt Disney Company announces more layoffs that will affect the film, television, and finance departments, including marketing and casting. Disney explained that they have been “surgical” in their approach to the layoffs and that no teams will be fully closed down.This news comes after thousands of workers were laid off in 2023 as Bob Iger committed to saving over $5 billion company-wide.How do you feel about Disney’s statement that “streaming is dead”? Let Inside the Magic know in the comments below!The post Amid Employee Layoffs, Disney Says “Streaming Is Dead” appeared first on Inside the Magic.