The Walt Disney Company DIS is strengthening its international streaming business, creating a potential path to challenge Netflix NFLX and Amazon AMZN through local content, improved engagement and a broader Disney+ ecosystem. Disney’s early international programming results are encouraging, with Rivals Season 2 becoming the biggest EMEA original premiere in the U.K. and Ireland, while The Perfect Crown became the most-watched Korean premiere on Disney+ globally. Dear Killer Nannies was the most-viewed LATAM original premiere globally on Disney+ over the past year. Disney plans to roughly triple its local original series over the next three years to drive new international users and reduce churn.
The strategy is gaining support from improving streaming economics. Entertainment SVOD revenues increased 11% year over year in the third quarter of fiscal 2026, while subscription revenues rose 15%, and Entertainment SVOD operating margin reached 13%. Disney+ also recorded a decline in churn across its domestic and international services during the reported quarter.
The key challenge is balancing international growth with content investment and retention. Disney must consistently produce locally relevant programming while keeping users engaged between major tentpole releases.
Overall, Disney’s expanding local-content slate, improving churn and stronger SVOD profitability provide a meaningful foundation to challenge NFLX and AMZN in international streaming. The September 2026 appointment of Adam Smith to lead Disney’s global entertainment SVOD business further underscores the strategic importance of its streaming operations.
How Are Disney’s Global Streaming Rivals Positioned?
Amazon is strengthening its international streaming position through Prime Video’s combination of original content, third-party titles and live sports. In the second quarter of 2026, Amazon reported that NBA viewership in Europe more than doubled year over year, reaching its highest average viewership on record. Amazon is also expanding Prime Video advertising and sports programming, giving Amazon a broader global streaming proposition that competes with Disney.
Netflix is competing through its extensive global reach, localized programming and growing live-event strategy. Netflix says it operates in more than 190 countries, while regional programming such as South Africa’s The Polygamist demonstrates its ability to develop and distribute local hits globally. Netflix also plans to expand regional live events, reinforcing Netflix’s international streaming proposition against Disney.
DIS’ Price Performance, Valuation & Estimates
Shares of Disney are down 8.7% year to date compared with respective declines of 12.9% and 12.5% for the Zacks Consumer Discretionary sector and Media Conglomerates industry.
DIS’ YTD Price Performance
Image Source: Zacks Investment Research
Disney trades at a trailing 12-month P/S ratio of 1.69X, higher than the industry’s 1.23X. DIS carries a Value Score of C.
DIS’ Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects Disney’s fiscal 2026 earnings at $6.91 per share, up 16.5% year over year, with estimates revised higher over the past 30 and 60 days.
Image Source: Zacks Investment Research
DIS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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