Disney’s Streaming Growth Hinges on International Expansion and Local Content

Disney’s U.S. streaming growth has stalled, shifting focus to international markets as the company’s biggest opportunity. Bernstein reports that Disney+ added no U.S. subscribers last quarter, with only modest gains expected ahead. Much of the near-term growth will come from Hulu through its Charter deal rather than organic sign-ups.

While Netflix generates nearly 70% of subscriptions outside the U.S., thanks to popular local-language hits like Squid Game and Money Heist, Disney lags far behind. In many developed markets, Disney+ penetration is below 20%, and in some under 10%. A key factor is content strategy—only about 10% of Disney+ titles are in foreign languages, compared to Hulu’s 20–25% and Netflix’s majority foreign-language catalog. Analysts emphasize that without stronger investment in localized content, Disney+ faces limited growth potential.

Cost discipline has also slowed expansion. After spending $30 billion on content in 2022, Disney has reduced that to around $24 billion in 2024, with just $14 billion directed toward general entertainment. By comparison, Netflix is expected to spend $18 billion in 2025, most on non-sports programming. Bernstein warns that prioritizing short-term margins over content risks undermining long-term subscriber growth.

Disney plans to expand Hulu internationally by replacing the Star tile on Disney+ with the Hulu brand in overseas markets. However, analysts stress that rebranding alone won’t close the gap with Netflix. To compete effectively, Disney must commit to producing more local-language content across Europe, Asia, and Latin America.

Bernstein maintains an Outperform rating on Disney (NYSE:DIS) with a $129 price target, noting that long-term success depends on sustained investment in original and localized programming. While higher spending may pressure margins in the short term, analysts argue it is essential to drive subscriber growth in an increasingly competitive streaming market.