Disney earned more than $1 billion in revenue in Australia during the last financial year. Despite reporting such hefty local revenue, most of this was sent overseas as royalty payments to its American parent company, helping the company avoid virtually all tax in this country.
An Australian Securities and Investments Commission (ASIC) filing showed that Australian revenue rose as the company’s global earnings decreased. Australian revenue increased from $743 million to $1.01 billion, while profits grew by a third to $63 million, leading to a $16 million tax bill due to a large portion of its revenue being funnelled offshore. This was similar to the tax Disney paid the year prior.
A majority of Disney’s Australian revenue came from licensing, $854 million. That included ESPN Australia, film distribution and streaming, which had its revenue counted for the first time this past financial year.
The Disney+ streaming platform is widely used in Australia, reaching 3.3 million users; behind market leader Netflix, which reported 6.4 million Aussie users. Whilst the filings don’t specifically break down streaming revenue, they cover a period of time in which Disney+ subscription prices were raised.
“Crossing the billion-dollar revenue mark is significant for The Walt Disney Company Australia. Our local operations are of a size and scale commensurate with being one of the largest entertainment and media companies in the country. We have a significant local footprint and deep ties to industry,” Kylie Watson-Wheeler, Disney’s local managing director, told the AFR.
The streaming platform drove most of the company’s global direct-to-customer business, reportedly earning $1.3 billion last year on $25 billion in revenue. This figure soared a staggering 800 per cent compared to the previous financial year.
Separately, the Wall Street Journal reported Disney’s global CEO Bob Iger plans to step down from his role ahead of his contract expiring at the end of the year. Although there is no specific timeline attached to this report, it is expected Iger will remain for a number of months after his resignation to mentor his successor.
Iger initially joined Disney in 2005 and grew its market value from $50 billion to $250 billion. He left the company in 2020 and later returned in 2022 after Bob Chapek was ousted.
The announcement of his return was originally celebrated but ultimately consumed by a number of layoffs in 2025.
The billion dollar profit from Disney’s direct-to-consumer business, presumably driven mostly by Disney+, highlights a disparity between booming local markets and broader company challenges.
