This report was completed in the AFL-CIO Strategic Corporate Research Summer School program in Summer 2025. I conducted an analysis of Walt Disney on behalf of WGA West using the method developed by Kate Bronfenbrenner. The report can be found in full here. The following is an excerpt of that analysis.
Disney reports income for three business segments: Entertainment, Experiences and Sports.
The Entertainment segment earns approximately half of Disney’s revenue, generating $41.2
billion in 2024, up 1 percent from $40.6 billion in 2023. Within this segment, Disney has 3
business lines: Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. Among
these lines, Direct-to-Consumer has experienced the bulk of growth, growing revenues 15
percent from $19.9 billion in 2023 to $22.8 billion in 2024. Linear Networks revenue is
declining, dropping from $11.7 billion in 2023 to $10.7 billion in 2024. Analysts do not
expect this revenue to recover as the industrywide shift away from linear television remains
permanent, but they acknowledge Disney has largely adapted to the changes in this segment.116
The Content Sales/Licensing section is also declining, dropping from $9.0 billion in 2023 to $7.7
billion in 2024.
Operating income in the Entertainment segment was $3.9 billion in 2024, up from $1.4
billion in 2023. This represents a near doubling of the operating income from this segment.
Within the segment, the bulk of operating income is within the linear networks segment, which
had $3.5 billion in operating income, down 16 percent from 2023, when operating income was
$4.1 billion. The Direct-to-Consumer line managed to reverse an operating income loss of
$2.5 billion in 2023 into a gain of $143 million in 2024. The Content Sales/Licensing line
operating income grew as well, from a loss of $179 million in 2023 to a $328 million in 2024.120
Notably, Disney reports a decline in total programming production costs, from $5.6 billion in
2023 to a $5.1 billion in 2024, which includes fewer hours of scripted programming due to the
writers’ guild strikes. Disney remains positioned to maintain or grow its profitability in its
DTC segment, and its expanding Sports offerings are expected to boost its subscriber counts.
The Experiences segment is the second largest source of revenue and the fastest growing,
with $34.2 billion in revenue in 2024, up from $32.5 billion in 2023. This segment is also
responsible for the bulk of Disney’s operating income, generating $9.7 billion in 2024, up from
$8.9 billion in 2023. In this business segment, revenues from theme park admissions reached
$11.2 billion in 2024 and revenue from resorts and vacations reached $8.4 billion. International
parks grew from $5.5 billion in revenue in 2023 to $6.2 billion in revenue in 2024, while
operating income from this segment grew from $1.1 billion to $1.4 billion.125 Even though
International parks are a small share of total operating income in the Experiences segment, their
increase in operating income from 2023 to 2024 amounted to 80 percent of the Experiences’
segment operating income growth, an increase of $253 million out of a total segment increase of
$318 million. Disney has a major head start over its closest competitor in this segment, NBC
Universal, and analysts suggest this segment will grow or remain positive even as the company
weathers an impending recession.
The Sports segment earned revenues of $17.6 billion in 2024, up from $17.1 billion in 2023.
Affiliate fees declined, but increases were measured in advertising and subscription fees.
Operating income in the Segment declined slightly, from $2.5 billion to $2.4 billion.
Walt Disney’s stock price is at $122, up 40 percent year-over-year. The stock’s 5-year
peak was during the COVID pandemic, when it boomed to $180 a share, before declining $100
in November 2022. It has largely stayed between a high of $126 and a low of $80 per share. In
the last 6 months, on news of potential tariffs in the film industry, the stock price fell towards a
low of $86 but has been rising back towards $130 since as those threats have yet to
materialize. Many analysts recommend buying the stock, with analysts noting strong revenue
growth and limited cost growth.
In its Entertainment division, Disney relies heavily on tax credits for filming. In California,
Disney has earned significant tax credits for its feature film productions; in 2024 a single film
earned a $61 million tax credit in 2024 through the California Film Commission tax credit
program.
Notably, Disney has sought to take advantage of international tax credits in recent years, such
as when it switched filming locations from Georgia to the United Kingdom. Reports speculate
the value of tax credits in the United Kingdom for 15 Marvel films in the United Kingdom to be
over $600 million. This move, among others by production studios, has inspired a reactionary
push by President Trump to “Make Hollywood Great Again” by imposing 100 percent tariffs on
all films produced outside the United States, and to boost film. It also ties into a bipartisan
push to extend tax deductions for domestic film production led by Jon Voight.
In its Experiences segment, Disney has used accelerated depreciation on its underperforming
attractions to reduce its tax burdens. The ability for companies including Disney to use this
accounting method to reduce its tax burden was extended under the recently passed
reconciliation bill, after being scheduled to phase out in 2023.
In the last 5 years, there were at least 14 occupational safety violations registered against
Disney in OSHA records. All 14 were related to businesses in Disney’s Experiences segment,
with the majority being complaints against Disney’s theme parks in Florida and California. In
addition to these confirmed violations, there were 29 complaints filed that ended in monitoring,
deferral, or settlement.
The current FCC Chair Brendan Carr launched an investigation into Walt Disney over its
DEI policies in hiring. The implication of the investigation, as stated outright by Carr, is that
approvals for mergers and acquisitions will face significant obstacles unless Disney complies
with Trump administration priorities related to ending DEI programs.
At the state level in the United States, Disney has faced conflict with right-wing politicians.
In Florida, Disney controlled a quasi-governmental body called the Central Florida Tourism
Oversight District (formerly Reedy Creek Improvement District) that it used to manage its Walt
Disney World park outside of Orlando. Control over this body become a key point of
contention between Disney and Governor Ron DeSantis of Florida, who mobilized a takeover of
the board as a reaction to Disney’s political opposition to an anti-LGBT bill he had recently
signed into law.While DeSantis intended to dissolve the taxing district, he was forced to settle for taking over appointment of its board members. Disney is Florida’s largest single site employer.
Disney has faced criticism for issues related to sustainability in its vast global supplier
network. In a 2016 report “Going Green or Greenwashing?,” Disney suppliers with known
environmental violations were identified, and Disney’s stated “green” goals were challenged.
Commentators have noted as well that Disney customers travelling to its parks rely on air travel,
which has a significant climate impact.
Many labor unions intersect with Disney’s main business segments. A significant portion of
Walt Disney’s employees have organized unions. SAG-AFTRA and the WGA represent actors
and writers, who together produce content for Walt Disney’s three business segments, and
conduct industry-wide bargaining with the Alliance of Motion Picture and Television
Producers. Actors’ Equity Association 1,700 workers in Los Angeles. There approximately
14,000 workers represented in Los Angeles via Teamsters Local 495, BCTGM Local 83, UFCW
Local 324, and SEIU-USWW. Walt Disney World workers in Orlando, FL are represented by
Unite Here Local 362. International park workers are represented as well, such as the
Federation of Oriental Land Group at Disneyland Tokyo and the CFDT at Disneyland Paris.154155
As Disney has expanded into new business lines such as residential real estate development,
the company has faced backlash from would-be neighboring residents.156 The site of one such
project in Rancho Mirage, California will take place on land that was purchased, cleared, and
sold by the Rancho Mirage Housing Authority, which displaced a mobile home park where
hundreds of low-income families were living.
Disney has staked out a strong pro-Israel stance, donating $2 million to Israel’s military
during its ongoing attacks on Palestine, and offering to match donations from employees up to
$25,000.
Disney theme parks have strong followings of dedicated fans, who organize websites, trips,
and write reports on Disney parks. The intensity of Disney fanatics can be seen in the reaction
when Disney closed an attraction in one of its parks, leading fans to harass and target employees
with threatening emails.
Walt Disney currently faces a reactionary political environment due its opposition to anti-
LGBT laws in states where it operates. The Trump administration has threatened to impose
tariffs on films produced outside the United States, which would directly impact Disney.
Disney also faces pressure from the current presidential administration to revoke its DEI policies,
which it intends to comply with, according to commentators reacting to its latest financial
results.
Camille Kaplan 