Disney’s Entertainment Model Stumbles as Amazon Doubles Down on AI Infrastructure Spending

1 week ago 12

Jeremy Phillips

Tue, December 9, 2025 astatine 8:12 AM CST 5 min read

A ample presumption surface successful a modern boardroom displays a examination titled 'AMZN vs. DIS: THE GREAT DIVERGENCE'. Amazon is represented by an upward arrow and maturation charts, detailing its accelerating platform, portion Disney is shown with a downward arrow and declining charts, summarizing its navigating transition. Two men successful concern attire are seated astatine a league table, observing the presentation.

AWS grew 20% to a $110B tally complaint portion Disney’s level gross reflects streaming gains offset by 35% little Entertainment operating income.
Amazon spent $35.1B connected capex successful Q3 and plans implicit $75B successful 2025 for AI infrastructure. Disney allocated $2.47B to capex.
Amazon’s 24.3% instrumentality connected equity astir doubles Disney’s 12.2% owed to recurring unreality gross versus cyclical contented performance.
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Amazon (NASDAQ: AMZN) and Disney (NYSE: DIS) conscionable reported net revealing 2 companies moving successful other directions. Amazon delivered 13.4% gross maturation and accelerating unreality momentum. Disney posted level revenue, down 0.5% year-over-year, arsenic streaming gains failed to offset bequest media weakness.

Is it unusual that I'm comparing what are present 2 drastically antithetic companies successful drastically antithetic industries? Somewhat, but I judge what we tin larn by looking astatine the 2 volition pass my and your aboriginal concern decisions.

The opposition clarifies what separates a tech level built for standard from an amusement conglomerate navigating a achy transition.

Amazon Web Services grew 20% year-over-year to scope a $110 cardinal annualized tally rate, re-accelerating to a gait not seen since 2022. CEO Andy Jassy noted that AWS's AI concern unsocial is "growing much than 3 times faster astatine this signifier of its improvement arsenic AWS itself grew." The company's Trainium2 AI spot saw adoption surge 150% quarter-over-quarter.

Disney's direct-to-consumer conception grew 8%, driven by Disney+ and Hulu subscriber additions. But that summation couldn't offset a 35% driblet successful Entertainment operating income, pulled down by weaker contented income and licensing revenue. Parks and experiences remained a agleam spot, with operating income up 13%, but the conception can't transportation the full institution portion linear networks proceed their structural decline.

Business Driver	Amazon	Disney
Main Growth Engine	AWS unreality + AI infrastructure	Parks + streaming subscriptions
Revenue Growth (YoY)	+13.4%	-0.5%
Return connected Equity	24.3%	12.2%
Operating Margin	11.1%	11.9%

Amazon generated $21.19 cardinal successful nett income, up 38.2% year-over-year. Disney earned $2.55 billion, a betterment from anemic prior-year comparisons but inactive reflecting the situation of monetizing contented successful a fragmented media landscape.