Disney posted mixed results for the June 2026 quarter, as Disney+ and Hulu continued to boost profits and the theme parks division turning in solid performance. And Disney CEO Josh D’Amaro revealed his latest move to restructure the media conglomerate’s operations: He’s moving most of consumer products out of Disney Experiences and into the entertainment unit.
In a letter to shareholders accompanying the earnings results Wednesday, Disney CEO Josh D’Amaro said that starting in Q1 of fiscal 2027 (which runs October-December 2026) Disney will be moving “much” of its consumer products business results from the experiences segment to the entertainment segment. That means that sales for merchandise for “Avengers: Doomsday,” for example, would fall under entertainment revenue and put consumer products under Disney Entertainment’s studios group. The consumer products business accounted for $1.1 billion in revenue this quarter, the strongest year-over-year growth in five years.
“We believe this shift will have strategic and operational benefits by bringing the monetization of our IP through consumer products closer to the studios that create that IP,” D’Amaro wrote in the letter to shareholders. “Additionally, we believe this presentation will better reflect the returns our Entertainment segment is generating from the content it produces and make our Entertainment segment more comparable to peer reporting methodologies.”
