# Netflix and Disney scramble to survive

> Streaming giants Netflix and Disney face corporate upheaval as Skydance's David Ellison aims to outspend them.
- Title: Netflix and Disney scramble to survive · Slate Magazine
- Summary: Streaming giants Netflix and Disney face corporate upheaval as Skydance's David Ellison aims to outspend them. Netflix and Disney are making drastic cuts and…
- Keywords: netflix, disney, skydance, david ellison, warner bros discovery, streaming, layoffs, content, subscription drop-offs, scramble, survive, Slate Magazine
- Source: Slate Magazine — https://slate.com/business/2026/10/netflix-disney-layoffs-skydance-david-ellison.html?via=rss
- Author: Nitish Pahwa
- Published: 2026-10-16T19:32:22+00:00
- Read time: 1 min
- Topics: netflix, disney, skydance, david ellison, warner bros discovery, streaming, layoffs, content, subscription drop-offs, ai
## Corporate survival
The entertainment industry faces a decisive transition with Disney, Netflix, and Skydance Corporation vying for survival.
## Skydance's rise
Skydance Corporation, led by David Ellison, acquired Warner Bros. Discovery this month to form a multibillion-dollar media empire.
## Skydance's goals
Ellison aims to outspend Disney and Netflix despite facing multibillion-dollar debt and a cratering stock price.
## Netflix's struggles
Netflix has faced subscription drop-offs, lower ratings, and a failed bid to acquire Warner Bros. Discovery.
## Netflix layoffs
Netflix cut 6 percent of its staff, including top content officers and division managers.
## Netflix-Disney partnership
Disney will allow Netflix to stream certain titles, including Plus Originals, for varying lengths of time.
## Disney's restructuring
Disney is becoming a more efficient organization under new CEO Josh D'Amaro with internal consolidation and external deals.
## Political ties
David Ellison's father, Larry, has financial ties to Trump and supports federal use of Oracle applications.
## Regulatory battles
Disney faces legal battles with the FCC over ABC News programming and antitrust concerns from Republican lawmakers.
## Competitive pressures
Netflix and Disney must adapt to technological changes while facing competition from Skydance's government connections.
## Key takeaway

Netflix and Disney are making drastic cuts and partnerships to survive against Skydance Corporation, which has absorbed Warner Bros. Discovery under David Ellison's leadership.