Disney Bets Another Billion on Live Sports

The Walt Disney Company is boosting its fiscal year 2026 content budget by $1 billion to a total of $24 billion, a move driven almost entirely by the spiraling cost of live sports rights. The massive investment underscores the immense value of marquee sports in the streaming wars, even as it puts a bigger financial burden on the company.

• The price of the game: The budget increase is almost entirely earmarked to cover the ballooning cost of live sports rights, headlined by the company's massive new 11-year deal with the NBA. Starting this season, the agreement triples Disney's annual payment to the league to $2.6 billion, reflecting intense competition for premium sports content.
• Playing defense: The strategy hinges on marquee sports leagues' immense value in a fractured media environment. CFO Hugh Johnston called the NBA a "phenomenal property" that draws a "scale audience," which is critical for attracting advertisers and fending off intense competition from deep-pocketed tech giants like Amazon, also a partner in the new NBA rights deal.

The main financial hit from the new contract is expected to land in the second half of fiscal 2026. But the spending spree isn't limited to Disney; rival Paramount is also reportedly upping its content spend by $1.5 billion as it competes in sports and entertainment. Meanwhile, Disney CEO Bob Iger has also teased plans to integrate artificial intelligence into the company's operations.