Tag: Entertainment – Variety

  • Warner Bros. Discovery Q2 Profit Slumps on NBA Ads, Movie Schedule, Write-Downs

    Warner Bros. Discovery Q2 Profit Slumps on NBA Ads, Movie Schedule, Write-Downs

    Warner Bros. Discovery has a great story to tell about its streaming business –if only its other operations didn’t get in the way.

    The parent of HBO, TNT and the Warner Bros. movie studio said net income in the second quarter fell significantly as growth at its new-tech streaming operations was more than offset by the continued erosion of its cable-TV networks and a weaker studio lineup than in the year-earlier period. TV ad sales fell 22% due to Warner’s loss of NBA games after the 2025 season, and TV distribution revenue fell due in part to a 10% decrease in the number of subscribers to its networks.

    Total revenue fell 11% to $8.7 billion, compared with $9.8 billion in the year-earlier period. Net income attributable to the company fell to $149 million from $1.58 billion, partially the result of $1.1 billion of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.

    Warner is in a difficult spot. It needs to continue to manage its operations even though it has agreed to be purchased by Paramount Skydance. While the proposed deal has won approval in multiple countries, it has been held up in federal court by a coalition of 12 attorneys general who are making the case that the combination of the two media companies would create an entity that would be in violation of antitrust law in areas such as movie production and the operation of cable television properties. The case will not come to trial until next year.

    Even so, Warner had some bright spots to show off. Streaming revenue rose above $3 billion for the first time, thanks to an increase of 10% that was aided by expansion of HBO Max in various markets around the globe. In a move that counters conditions at its TV networks, Warner said advertising and distribution revenue increased noticeably at its streaming venues, with distribution fees up 11% and ad revenue up 8%.

    Revenue at the company’s studios was off 39% to $2.3 billion thanks to comparisons with the year-earlier period, which benefitted from the release of films such as “A Minecraft Movie,” “Sinners,” and “Final Destination Bloodlines.”

  • Versant Sees Q2 Profit Fall on Revenue Declines, Despite Ad-Sales Improvements

    Versant Sees Q2 Profit Fall on Revenue Declines, Despite Ad-Sales Improvements

    Versant Media said second-quarter net income fell by 30% as the new media company continued its efforts to add non-traditional assets to lend ballast to its linear media operations.

    The owner of MS NOW, CNBC and USA said net income fell to $211 million from $302 million in the year-earlier quarter, a decline of $91 million. The company cited lower revenue, the costs of operating as a public company, interest expense following its separation from Comcast, and increased tax expense tied mostly to the divestiture of SportsEngine, an online sports management software company that was sold in May.

    Versant, spun off from Comcast earlier this year, is focused on generating new revenue from digital and direct to consumer operations. In recent weeks, it has expanded Fandango into a broader consumer entertainment platform, and made progress on new subscription projects at both CNBC and MS NOW. “Together, we believe these initiatives build on the foundation of our portfolio, deepen consumer engagement, and position Versant for long-term growth,” said Mark Lazarus, the company’s CEO.

    Revenue in the second quarter fell 3.8% to $1.64 billion. Distribution fees fell 6.3% in the second quarter, largely due to subscriber declines. Ad revenue was off 0.6%, compared with a decline of 13% in the year-earlier quarter, reflecting improvements in ratings at some of its networks. Revenue from platforms, which include many of Versant’s direct to consumer businesses, rose 0.8%, due to higher revenue at Fandango and GolfNow.

    Versant said it was confident in its near-term future, raising revenue and cash-flow projections for the second half of the year.

  • Regal Cinemas CEO Eduardo Acuna Backs Paramount-Warner Bros. Merger, Says Antitrust Trial ‘Creates More Uncertainty and Distraction’

    Regal Cinemas CEO Eduardo Acuna Backs Paramount-Warner Bros. Merger, Says Antitrust Trial ‘Creates More Uncertainty and Distraction’

    Regal Cinemas CEO Eduardo Acuna released a statement on Wednesday evening in support of the looming Paramount-Warner Bros. merger.

    “This year has been an important one for our industry. Attendance is up, younger audiences are coming out in numbers we haven’t seen in years, and the upcoming release schedule looks just as strong,” Acuna wrote. “While there is real momentum, we need a thriving studio system to ensure that the industry has a platform from which to grow.”

    “This is why, after much consideration, we believe it’s time for Paramount Skydance’s acquisition of Warner Bros. Discovery to move forward,” Acuna continued. The CEO explained that he spoke to Paramount-Skydance CEO David Ellison, who has made “some specific commitments” to ensure the theater business continues to thrive. Those commitments include, “At least 30 theatrical films a year, a protected theatrical window with 45 days for TVOD and 90 days for SVOD for a minimum of three years, and a $30 billion annual investment in media content.”

    “A long fight in court that extends into spring or summer doesn’t put more films in theaters, and is not beneficial to studios, filmmakers, the guests who go to the movies, or theater businesses like Regal and the people who work for them,” Acuna added. “It just creates more uncertainty and distraction that could be damaging to our industry as we build on our current success.”

    Regal’s backing comes a week after AMC Theatres CEO Adam Aron published an op-ed in Variety explaining his own reasons for supporting the deal. With the addition of Regal, Ellison now has the country’s two largest theater chains on his side, which will prove to be key allies as he prepares for a March 2027 antitrust showdown against California attorney general Rob Bonta and his coalition of 11 other state AGs.

    The development is a blow to the states’ lawsuit, which was filed on July 13. It alleges that the $111 billion merger violates the Clayton Act by diminishing competition in three key markets: wide-release theatrical distribution, “top-grossing” theatrical distribution and basic cable licensing. The suit also claims the wallets of theater owners and consumers will be hurt if Paramount and Warner Bros. are allowed to merge. However, with AMC and Regal now in the Ellison camp, it will most likely be extremely difficult for Bonta and his team to prove that the exhibition will suffer in a post-merger industry.

    Acuna and Aron also appear to be at odds with Cinema United, the exhibition industry trade group, and its head, Michael O’Leary, who have come out swinging against the sale of Warner Bros. to Paramount. Last week, O’Leary reaffirmed the group’s opposition in a letter to its members, writing, “this transaction will result in fewer movies, higher costs for you and your patrons, and ultimately, fewer theatres. The promises of support for theatrical being made in the media are high-level and unenforceable and as such do nothing to alleviate the harms.”

    On Tuesday, Judge Araceli Martinez-Olguin issued a ruling that the antitrust trial will last 12 days, running from March 2, 2027, to March 19. In a July 31 motion, Paramount requested the judge schedule the trial in November, while the states and the Writers Guild of America, who are also suing to stop the merger, requested the trial take place in March. Paramount wants this deal done as soon as possible, considering that it has to pay a “ticking fee” to Warner Bros. Discovery of $7 million for every day past Oct. 1 that the deal remains in limbo.

    Ellison published an op-ed in the New York Times on Tuesday, in which he wrote that the real reason the state AGs want these deals blocked is that he will control CNN if he’s allowed to scoop up Warner Bros.

    “I believe this fight is not really about market share,” Ellison wrote in the essay. “I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner’s CNN.” Ellison, reasserting his promise of an independent and fair CNN, added, “When it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth.”

    Deadline was the first to report Acuna’s statement backing the merger.

  • ‘The Shards’ Star Igby Rigney on Wooing Ryan Murphy, Never Meeting Bret Easton Ellis and Not Worrying About Sex Scenes: ‘It’s Like Doing a Dance Under a Microscope’

    ‘The Shards’ Star Igby Rigney on Wooing Ryan Murphy, Never Meeting Bret Easton Ellis and Not Worrying About Sex Scenes: ‘It’s Like Doing a Dance Under a Microscope’

    Igby Rigney is exhausted. 

    It’s a day before “The Shards” launches, and he’s just gotten back from Berlin, the final stop of a global press tour that also took him to New York and London. When the series debuts on FX on Aug. 5, he’ll be celebrating at the official launch party at a roller rink in Los Angeles. 

    Right now, during this brief moment of calm, he’s home in L.A. and resting with his cat, Plusha, who meows throughout our Zoom interview. “I feel like a Bond villain,” he says, petting the animal in his lap.

    Rigney plays Bret in “The Shards,” Ryan Murphy’s adaptation of Bret Easton Ellis’ 2023 autofiction opus that follows the author in his high school years. Bret navigates teenage social politics, the drug-fueled excesses of 1980s Los Angeles and his closeted homosexuality, all while a serial killer stalks the Valley and picks off his classmates in an increasingly gruesome fashion.

    The series marks the first time the 26-year-old actor headlines a major project. “They asked if I wanted to see the reviews when they come in. I guess they’ll put them in a packet,” Rigney says. “I was like, ‘Oh man, do I? I don’t know.’ I think I said, ‘Yes, I’ll take the packet, but I can’t promise to read all of them.’”

    Ryan Murphy said at the New York premiere that about 500 actors auditioned for “The Shards.” What was your audition process like?

    Yeah, I got the sides in my inbox, and I was super excited because they asked me to come in person to a studio in L.A. for the initial read. That’s very special, because so many times you don’t even get into the room with people until chemistry reads. I was over the moon to be doing it the old-fashioned way — getting to go in, meet the casting director and build a tape together with someone who knows exactly what they’re looking for.

    We had a ton of fun in the room. Ryan saw that tape, and asked me to come to New York. That’s where I met [future co-stars] Graham [Campbell] and Hayes [Warner] at that initial callback with Ryan. I came in, and Ryan asked, “Have you read the book?” I was like, “No… I haven’t.” I think I gave a reasonable answer: I was so enamored by the sides he’d written, and I knew this was ultimately going to be an adaptation, so I wanted to focus on the material at hand for the audition. He said, “Great, that was awesome. I’d love to see you again, but go read the book. You must read the book before I see you next.”

    So I did. I actually listened to the audiobook, which is read by Bret. Then I came back in and did a chem read with Graham and a chem read with Homer [Gere]. Ryan encouraged us to play. He approached it much more like an acting class or an acting exercise. It didn’t feel like a typical audition or a judgmental process. It wasn’t, “Are you good enough to play this part?” It was more, “Let’s play around, figure this out, and see how all of this feels.” Luckily, it all went well.

    Your narration is a big part of the show. How did you craft the character’s voice, and did you base it on Bret’s reading of the audiobook?

    I wanted to use it as a reference, because it’s so interesting how people speak and what they choose to emphasize — where you can hear excitement and patterns like that. I found an interview with Bret in his early 20s, which was the closest I could find to what he would have sounded like in high school. I listened to that a bunch, and I worked with Ryan to make sure it wasn’t distracting, and that it was all in service of telling the story.

    Did you meet with Bret at any point? Has he been involved in your crafting of the character?

    No. I mean, he’s been involved with the crafting of the character, but he’s been working with Ryan primarily. I’ve never gotten to meet him.

    Would it have been helpful to meet Bret, do you think? Or was it beneficial to have that distance?

    I don’t know, just because I haven’t had that interaction. Just being able to focus on the scripts and lean on Ryan and what he was hoping to bring to life has maybe led to more clarity and was less overwhelming for me. I didn’t have access to Bret and I don’t have access to whatever information I could have potentially learned from that, so I could just let that piece go and really focus on what Ryan was giving us on the day.

    It’s interesting, because your part is both a real person and a fictional character.

    That’s what’s so interesting about the book: So much of it is told with the phrase “I remember.” I remember I was driving on the Pacific Coast Highway. It’s almost like a motif in the text. I remember this, and I remember that. It’s all in retrospect, which is interesting to play. There’s a potential unreliable narrator element to it. Naturally, he is remembering a time that was very long ago, and we’re bringing that time period to life in the present.

    What was it like to film on location in L.A.? Sadly, that’s a rare thing these days.

    It was so cool. It was insane to be listening to the book, driving the streets that he’s talking about — also commuting in L.A. for me was a first. I know the routes through the hills now way more intimately than I ever thought I would. It certainly made me feel like I finally do live here now. I can confidently navigate the city without a map — not that that’s ever a good idea, because you never know where traffic is going to show up. But L.A. is almost a character in the book, and I think the show is such a beautiful visual love letter to the city.

    There’s even a supposed secret shortcut to the Valley…

    It exists, I think.

    Say more.

    If Terry Schaffer has access to it, then it must be a real thing. No, I love the L.A.-specific Easter eggs, and the shot of Cielo Drive, and the references to the history of the city. There is so much myth that surrounds Los Angeles, and that’s what makes it feel so alive to be here — both in reality and in the show. It’s an almost mythical place. There’s an unreliable history about Los Angeles. Will we ever know if a lot of those tropes and references are true?

    Speaking of unreliability, so much of the book takes place in Bret’s head, and it’s unclear whether he is inventing certain things or actually seeing them. Plus, as you said, he’s recalling these events from decades later. How did you convey that unreliable factor on-screen, and how did you think about that while playing the part?

    The way we bring that unreliability to life on screen is in the interactions between Bret and Robert. Some of those interactions happen only between them, with no witnesses. When they’re described to the group of friends by each character [after the fact], the descriptions are always different. We’re not sure who is lying and who is being truthful.

    The story requires a psychosexual relationship between Bret and Robert. How did you create that chemistry with Homer Gere?

    That was something Ryan helped us with in the chemistry read. He encouraged us to play with the dynamics and find the buttons we could push on each other. What created a physical response, and how could I surprise Homer and try to throw him off in a scene? We played this interesting game of tennis. But also, Homer and I love each other so much, and we’ve spent so much time together. The chemistry is real, because we’re trying to push each other’s buttons, but there is this underlying smile of, “Man, you’re really good at this, and I love doing this with you.” Those were some of my favorite scenes to film.

    What were the most challenging scenes to film?

    A big challenge actually came from how close we all got in real life. Bret has an interesting role in the friend group as this observer. He’s more connected to the world at large, and he’s starting to become isolated from his friends even though he cares deeply about them. He’s aware of all these happenings outside of their purview, and the more he tries to build a connection and reach out about the things that concern him, the less his friends want to entertain those conversations.

    The isolation was hard to play because we’d be in a scene together as a group of friends. As actors, we’re all friends and having the time of our lives, and I had to lock into this thing of “nobody is listening to me.” I’m remembering passages of voiceover in my head while everybody else is having a conversation around me, and I’m trying not to smile and join this group of lovely people that I adore spending time with.

    You could have gone Method, but then that would have been a more miserable experience.

    I know. That definitely would have made some things easier, but then I would have missed out on so much!

    Your character, at least in the book, has quite a bit of sex. Was that something you thought about when auditioning? Did it make you nervous?

    I definitely thought about it, but it wasn’t something I was very worried about. I wanted to make sure that I could pull it off in a way that was good for the screen and good for whatever aesthetic values Ryan had for the story. But I didn’t have any nerves about that. Obviously, we’re living in the time of intimacy coordinators, so all of it is carefully choreographed and specified and monitored. It’s like doing a dance under a microscope. It’s not a big cause for concern for me.

    There’s been a huge press blitz for “The Shards.” Over the past couple weeks you’ve been in New York, London, Berlin and Los Angeles. How does it feel to be No. 1 on the call sheet for a show like this?

    I’ve had so many people, as they would say in “Lord of the Rings,” share the load with me. Ryan did a very special thing in creating this super tight cast. Everybody made us feel welcome and protected on set, and we had a little summer camp experience. It’s more unnerving that this experience I shared with a group of people I love is now being presented to the world. That’s a crazy trip. But I didn’t feel a ton of weight because everybody around me was so amazing. With the press tour, sometimes I felt a little bad because we were having so much fun with each other that maybe some of the questions weren’t given a satisfactory answer.

    This interview has been edited and condensed.

  • Judge Dismisses Lawsuit From Paramount Streaming Subscribers Seeking to Block Warner Bros. Merger

    Judge Dismisses Lawsuit From Paramount Streaming Subscribers Seeking to Block Warner Bros. Merger

    A federal judge on Wednesday dismissed a lawsuit from a group of consumers looking to challenge the $111 billion merger between Paramount and Warner Bros.

    Judge Araceli Martínez-Olguín wrote that the plaintiffs — three current Paramount+ subscribers and two prospective subscribers — presented a lack of standing in their suit. She also ruled that the plaintiffs failed to establish “cognizable” economic fallout that would invoke antitrust regulation. However, she has allowed plaintiffs to revise their complaint and refile.

    “The Complaint contains a boilerplate assertion of competitive harms, such as ‘lower quality and variety’ and ‘decreased consumer choice,’ but it fails to allege any facts to plausibly show how those claimed harms have materialized or would materialize,” she wrote. She later added, “Plaintiffs’ standing theory amounts to little more than the assertion that they are consumers who watch television and go to the movies, and therefore a merger between Entertainment companies would injure them.”

    Judge Martínez-Olguín will also preside over the antitrust cases from a group of 12 state attorneys general and the Writers Guild of America, which both claim the Paramount-Warner Bros. merger will do irreparable harm to the entertainment industry. Those cases are set for trial on March 2, 2027.

    Paramount-Skydance CEO David Ellison recently published an op-ed in The New York Times, in which he wrote that the reason the state AGs want the merger blocked is not because of consolidation, but because he will control CNN if he’s allowed to scoop up Warner Bros. Ellison’s ties to President Donald Trump, a long time critic of CNN, and the recent troubles with “60 Minutes” have made some in Hollywood nervous about the future of the historic news network.

    “I believe this fight is not really about market share,” Ellison wrote. “I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner’s CNN.” Ellison, reasserting his goal of an independent CNN, added, “When it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth.”

  • Olivia Rodrigo Slams Trump for ‘Defunding’ Planned Parenthood: ‘We’ll Never Stop Fighting’

    Olivia Rodrigo Slams Trump for ‘Defunding’ Planned Parenthood: ‘We’ll Never Stop Fighting’

    Olivia Rodrigo is supporting Planned Parenthood as the organization remains under attack from President Trump.

    The superstar singer was in a dance video posted to the Instagram and Twitter accounts of Daisy Chain Fields, her upcoming all-woman music festival. Text on the video, set to her song “My Way,” says, “Learning that nearly 30 Planned Parenthood health centers have closed since President Donald Trump signed a law ‘defunding’ Planned Parenthood,” as Rodrigo and other women stand looking serious. But then they break out dancing as the text switches to, “But we’ll never stop fighting for sexual and reproductive health care!!!”

    Rodrigo has been an active supporter of Planned Parenthood during her career, receiving the organization’s Catalyst of Change Award in 2025.

    Meanwhile, she has also been critical of Trump, calling out the White House on social media in June when they used her song to promote ICE, saying, “What they’re doing is so awful and barbaric and cruel. I am really sad to be in a country that thinks that’s OK.”

    President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, which defunded Planned Parenthood and cut federal Medicaid funding as well, making it more difficult for women to afford health care.

    Trump apparently changed his mind on Planned Parenthood, as he threw his support behind the organization at a 2016 press conference, saying, “Look, Planned Parenthood has done very good work for many, many — for millions of women. And I’ll say it, and I know a lot of the so-called conservatives, they say that’s really … cause I’m a conservative, but I’m a common-sense conservative.”

    Watch Rodrigo’s video below.

  • ‘Gilmore Girls’ Documentary Set at HBO Max With Lauren Graham, Never-Before-Seen Footage and More

    ‘Gilmore Girls’ Documentary Set at HBO Max With Lauren Graham, Never-Before-Seen Footage and More

    It’s time to return to Star’s Hollow.

    An official documentary about “Gilmore Girls,” the beloved seven-season family dramedy that premiered in 2000, is currently in production and set to debut on HBO Max. Per the official logline, the untitled film is told from the perspective of series creator Amy Sherman-Palladino alongside her husband, executive producer Daniel Palladino, and “reveals how the show eclipsed expectations to become a cross-generational phenomenon by unpacking the unique alchemy of the creators, cast, crew and collaborators. The film includes never-before-seen outtakes, behind-the-scenes footage and script pages.”

    Along with the Palladinos, the documentary will feature Lauren Graham, who starred in “Gilmore Girls” as Lorelai Gilmore, plus additional key cast and crew.

    Bonni Cohen serves as director on the documentary, which is produced by Sony Pictures Television’s This Machine, led by R.J. Cutler, in association with Warner Horizon Unscripted Television. Executive producers include Cutler, Jane Cha Cutler, the Palladinos, Mark Blatty, Elise Pearlstein and Trevor Smith. Cohen and Melissa Robledo serve as producers.

    “Gilmore Girls” was produced by Warner Bros. Television and aired on the WB for its first six seasons before moving to the CW for its seventh and final season from 2006 to 2007. Along with Graham, the cast included Alexis Bledel as Lorelai’s daughter, Rory Gilmore, as well as Melissa McCarthy, Keiko Agena, Yanic Truesdale, Scott Patterson, Kelly Bishop, Edward Herrmann, Liza Weil, Jared Padalecki, Milo Ventimiglia, Sean Gunn, Chris Eigeman and Matt Czuchry.

    While the Warner Bros. production is the first authorized documentary about “Gilmore Girls,” an unauthorized project called “Searching for Stars Hollow” was announced to be in the works in 2025 with Bishop, Padalecki, Chad Michael Murray and more set for interviews.

  • ‘The Mummy’ Poster Ads Banned From London Underground After Advertising Watchdog Cites ‘Distressing’ Imagery

    ‘The Mummy’ Poster Ads Banned From London Underground After Advertising Watchdog Cites ‘Distressing’ Imagery

    The U.K. Advertising Standards Authority has ruled that outdoor poster ads for “Lee Cronin’s The Mummy” breached its code by presenting an image that gave “a realistic impression of a dead child,” while clearing companion TV and streaming spots for the same campaign.

    The ASA investigated four issues stemming from several complaints about ads for the Warner Bros Entertainment U.K. Ltd. cinema release, seen in April this year. The regulator upheld one complaint and rejected the other three in a ruling published Aug. 5.

    “The ASA received 30 complaints, many of whom believed the ads were distressing for children and adults,” the ASA said.

    Posters on the London Underground and at outdoor sites showed a close-up of a mummified female figure with grey, ashen skin, cracked lips and one eye swollen shut, wrapped in material resembling a shroud and inscribed with hieroglyphic-style symbols.

    The ASA said the figure’s features gave “a realistic impression of a dead child” and that the material wrapped around her added to that impression. Because the posters ran in untargeted locations, including on the London Underground and at a site visible from a children’s nursery, the regulator concluded the imagery was likely to distress young children who saw it. It ruled the posters unsuitable for outdoor display in that form, finding them in breach of CAP Code rules 1.3 and 4.2.

    Warner Bros. had argued the poster’s neutral expression, open eye and absence of a sarcophagus or restraints were deliberate choices meant to reduce distress, and noted the studio’s outdoor buying policy of keeping horror titles at least 100 metres from schools – a standard that does not extend to nurseries.

    The ASA ordered that the poster ads “must not appear in the form complained of” and directed Warner Bros. to keep future marketing likely to frighten young children away from places where they would see it.

    The ruling cited BCAP Code rules 1.2, 4.1, 4.10, 5.1 and 32.3, and CAP Code (Edition 12) rules 1.3, 4.1 and 4.2.

    The ASA rejected a separate complaint that the posters trivialized child loss or ongoing global conflicts, finding that text identifying the image as promotion for a film provided sufficient context, even if some viewers found it distasteful.

    Variety has reached out to Warner Bros. Discovery for comment.

    The campaign also included a TV ad and a matching Prime Video ad depicting a family receiving a call about a daughter who had gone missing eight years earlier, with the father questioning what she was doing in a 3000-year-old sarcophagus. On-screen text read, “Some Things Are Meant to Stay Buried.” Both ran with a post-7:30 p.m. scheduling restriction cleared by Clearcast.

    The ASA found the TV and streaming ads were unlikely to cause serious distress and that their scheduling restrictions were sufficient to limit exposure to young children, rejecting complaints that they should have been kept off air later or targeted more precisely on Prime Video. It also noted Clearcast’s data showing an average children’s index of 31 across the TV placements – well below the industry baseline of 100 that represents typical child viewership, indicating the actual child audience was low. No further action was required for the TV and streaming ads.

    “Lee Cronin’s The Mummy” released in the U.K. on April 17 and grossed $2.9 million.

  • Disney Streaming Profit Doubles in June Quarter, Company Shifting Consumer Products to Studios Division

    Disney Streaming Profit Doubles in June Quarter, Company Shifting Consumer Products to Studios Division

    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 the first quarter 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 the bulk of the consumer products biz 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, who previously ran Disney Experiences before stepping into the CEO job in March, 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.”

    On the streaming front, revenue from Disney+ and Hulu was up 11% for the April-June quarter, to $5.53 billion — and operating income in the entertainment streaming segment more than doubled, to $712 million, compared with $329 million in the year-earlier period. Disney said overall streaming subscription revenue was up 15%, to $4.7 billion, and ad sales increased 3%. The company no longer discloses total subscriber figures on a quarterly basis.

    In the letter, D’Amaro also outlined some AI developments at the company, including the Parks division’s recently implemented large-scale use of Disney’s proprietary AI tool, J.A.R.V.I.S.

    “We made our J.A.R.V.I.S. AI tool available to our more than 2,000 Imagineers earlier this year, giving them instant access to over 70 years of institutional knowledge,” D’Amaro wrote. “We’re using AI-powered digital twins and simulation tools to design and stress-test new attractions, including leveraging these tools for the Abu Dhabi park. And we’re applying AI to simplify the booking and planning journey for our guests, while equipping our cast members with AI-assisted tools to better serve guests in the moment.”

    Disney continued to tout the blockbuster success of “Toy Story 5” in the latest quarterly earnings results, revealing the film’s release has also led to the franchise as a whole reaching more than 2 billion hours streamed on Disney+ and record consumer products sales.

    Overall, Disney reported net income of $2.63 billion on $25.2 billion in revenue, with adjusted EPS of $2.06 (up from $1.51 with the exclusion of income tax and one-time impairment and severance charges) for the quarter ended June 27. Revenue was up 7% year over year while net income increased 28% (without those favorable exclusion, income was down 48%) for the period, which is Disney’s Q3 of fiscal 2027. Wall Street analysts on average forecast earnings per share (EPS) of $1.85 on $25.4 billion in revenue for the three months ended June 30 (Disney’s Q3 of fiscal 2026), according to data provider LSEG.

    Total segment operating income was up 21% to $5.6 billion. Free cash flow came in at $3.1 billion.

    Following recent layoffs, D’Amaro noted that Disney remains “highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth and are evaluating a variety of levers, including reductions in labor and SG&A.” The CEO says the company is “mid-stream in this work” and “will provide future updates on our progress.”

    Previously, Disney had set an $8 billion goal for share repurchases in fiscal 2026, which ends in September. With the confirmation of the sale of Disney’s 50% stake in A+E Global Media to an affiliate of co-owner Hearst, Disney said it will use the approximately $1.2 billion in cash from the sale to increase its total share repurchases for the year to at least $9 billion.

    Disney took a $812 million impairment charge during the quarter due to its investment in A+E. Severance costs for the quarter were $88 million.

    Overall, Disney’s entertainment segment (which includes film and TV studios and networks as well as the streaming business) revenue was up 6% to $11.3 billion for the quarter. The division continued to receive a boost from the acquisition of a large stake in Fubo last fall, which it combined with the Hulu live TV business. The addition of Fubo contributed a 4% lift in subscription and affiliate fees revenue, which was up a total of 12%.

    Ad sales for the entertainment division were down 1% on lower rates. Content sales decreased 6% due to a decrease in TV/video-on-demand and home entertainment distribution sales.

    On the movie front, Disney praised “Toy Story 5” for surpassing $1 billion in global box office, bringing the franchise’s lifetime global box office to more than $4 billion, while downplaying recent releases “Star Wars: The Mandalorian and Grogu” and the live-action “Moana” movie, both of which “underperformed our box office expectations,” Disney said.

    ESPN revenue for the quarter was up 4% to $4.5 billion. Ad sales increased 5% on higher impressions. Operating income declined 17% to $858 million, a larger drop than the 14% that Disney previously estimated due to a double-digit percentage increase in programming expenses, including the timing of new rights agreements, on the close of the NFL Network deal. “Contributing to the lower-than-expected operating income were four-game sweeps in early rounds of the NBA Playoffs and the impact of a network carriage dispute,” Disney said.

    Disney Experiences, which currently houses theme parks, cruises and consumer products, saw June quarter revenue of $10 billion (up 10%) and operating income of $3 billion (up 20%).

    Attendance at Disney domestic parks grew 3% from April-June. Disney World in particular experiencing a “stand-out quarter, with healthy core attendance increases from domestic tourists and annual passholders, and effective summer promotions and new experiences that further supplemented growth,” though Disney notes it has “continued to face headwinds from international attendance at our domestic parks.”

    For the July-September quarter, the company expects total segment operating income of approximately $4.9 billion, with the inclusion of financial results from a 53rd week of operations.

    “Our strong fiscal Q3 results and reiterated full-year outlook reinforce our confidence that we are uniquely well positioned,” D’Amaro said in the letter to shareholders. “Decades of IP investment have built deep fan connections that translate into strong financial results. Our accelerating global guests growth at Experiences, ‘Toy Story 5’s’ theatrical and consumer products success, and strong ESPN viewership gains all helped expand our consumer reach this quarter. Together, our results show a unique ability to engage consumers at scale, both digitally and physically, even amid macro uncertainty.”

    Also Wednesday, Disney struck a content deal with TikTok that will let the app’s creators (initially in the U.S.) make shorts tied to characters and stories from Marvel, Pixar, Star Wars, FX and other properties. The resulting creator videos will be available on both TikTok and on Disney+ in the form of “Verts,” the company’s vertical video format.

  • Prateek Kuhad to Make Feature Film Acting Debut in Marginal MediaWorks, D36 and Jugaad’s ‘Drowning,’ Directed by Dar Gai (EXCLUSIVE)

    Prateek Kuhad to Make Feature Film Acting Debut in Marginal MediaWorks, D36 and Jugaad’s ‘Drowning,’ Directed by Dar Gai (EXCLUSIVE)

    Prateek Kuhad, the Indian singer-songwriter known for hits including “Cold/Mess” and “Kasoor,” will make his feature film acting debut in “Drowning” (“Doobna” in Hindi/Urdu), Marginal MediaWorks has revealed.

    Directed by Dar Gai and shot on location in New Delhi, the film marks Marginal’s first fiction feature produced in South Asia, in partnership with Los Angeles-based label D36 and Mumbai-based Jugaad Motion Pictures.

    Kuhad plays Tarush, an indie musician in Delhi who lands one breakout hit and then can’t escape the grip of a criminal record label boss. Marginal founder and CEO Sanjay M. Sharma is producing with the company’s head of film, Milan Chakraborty, D36 co-founder and CEO Abhi Kanakadandila, and Jugaad co-founders Dheer Momaya and Gai, from a story the group developed jointly.

    “The film is like if the Safdie brothers mixed John Carney’s ‘Once’ and Lars von Trier’s ‘Dancer in the Dark’ in the blender that is the contemporary music scene in Delhi,” Sharma said.

    For Kuhad, the project grew out of an earlier collaboration with Gai, who directed the video for his song “Cold/Mess.” “Ever since Dar directed the video for ‘Cold/Mess’ I hoped we would find more ways to work together,” Kuhad said. “So when Abhi and Sanjay brought the idea for a film inspired by my song ‘Drown,’ I was immediately intrigued.”

    Kuhad’s “Cold/Mess” reached No. 1 on Spotify India and was featured on former U.S. President Barack Obama’s year-end playlist; the Gai-directed video was later named Rolling Stone’s Music Video of the Year. His third album, “Full Moon Chamber,” arrived July 10 via Atlantic Records, following a run of sold-out headline tours across North America, Europe, the U.K., Asia and the Middle East. He is repped by CAA and Big Bad Wolf India, with Everyday Rebellion handling worldwide management.

    Gai’s credits include “Three and a Half,” which streams on Netflix worldwide after a stellar festival run; her second film, “Namdev Bhau: In Search of Silence,” played at Busan, BFI London and Palm Springs. Jugaad’s “Last Film Show” was shortlisted for the international feature Oscar. “With Doobna, I wanted to make a film that feels like life right now: real, funny, tragic, chaotic, and impossible to escape, impossible to press a reset button,” said Gai, a Ukrainian native long based in Mumbai.

    Kanakadandila, whose D36 roster spans South Asian-descent artists in the U.S., U.K., India and Pakistan, framed the film as a response to a gap he sees in how the region’s music culture reaches screen. “India has a singular relationship between music and cinema, but there’s a fundamental mismatch between the spirit of the contemporary scene and the format of traditional Bollywood,” he said.

    The film is the anchor of a South Asia-focused push within Marginal’s broader international slate, which also includes projects in Korea, Japan, Vietnam, Thailand, Europe and Canada. “This is a trillion dollar market, two billion people, more English speakers than the United States itself, and the fastest growing, digitally connected, and largest youth population in the world,” Sharma said. “Just as we’ve seen Korean culture, food, fashion, music and cinema resonate around the world, a similar wave is coming from South Asia.”

    Marginal has produced more than a dozen features in just over five years, including Tribeca 2025 Audience Award runner-up “The Rose: Come Back to Me,” Tribeca Jury Prize winner “Cypher,” and the recently released horror title “Camp.”