Entertainment giant Disney (DIS -0.56%) has some cyclicality to its business. Consumers reduce their spending on discretionary purchases, such as vacations, during a recession. That affects Disney’s experiences (parks, cruises, and vacation clubs) and other consumer products businesses.
However, despite concerns about the economy, Disney is seeing resilient demand for the experiences it offers. In its fiscal third quarter of 2025, revenue from domestic parks and experiences rose 10% while international revenue increased by 6%. Meanwhile, consumer product sales increased 3% and entertainment revenue increased 1%, driven by strong content sales and licensing (7%) and the growth of its direct-to-consumer offerings (6%) such as Disney+, as more people switch to streaming. That helped offset weakness in its linear networks (cable) and sports.