The End of Disney Home Video: What the April 2026 Layoffs Really Mean for Physical Media
Disney laid off its entire home entertainment department. Here's what it actually means for physical media collectors, and why you shouldn't panic.
Disney laid off its entire home entertainment department. Every single person who was left in that department is gone. It is truly the end of an era.
Before we get into it, I have to get petty for a second. This is the New England in me coming out for you all to see. My grandmother would be proud.
For years, when you searched my name on Google, one of the first results is a Reddit thread about how people don’t like me. That’s what you get for being a public figure. But one comment from CletusVanDamnit — who is clearly a massive fan of me personally — was the one that bugged me the most because he was just dead wrong about something I first said years ago. But I had to wait for this all to play out.
Cletus, sometimes you gotta let things play out, my friend. They don’t happen overnight.
And I was correct. Here is a YouTube video I made about the news today. For those who prefer to read, carry on below!
Over two years ago, Disney moved all of their physical media production over to Sony. Sony was taking over which titles came out, the packaging, the remastering, the distribution, the manufacturing of the discs. You name it, Sony was doing it. So already, Disney had done away with physical media internally. They were basically licensing it out.
Fast forward to April 14th, 2026. Disney had mass layoffs — about a thousand people — and it included what was left of the home entertainment department. Everybody from the top on down. There is no home entertainment department left at Disney.
Disney’s sole focus is now Disney+. I’ve had industry people tell me that if Disney had the opportunity, they would probably pull all of their movies and TV shows off of every digital service — no Fandango, no Apple TV, no Prime Video for rental or purchase. They want it all streamlined into Disney+. So it’s natural that physical media would also go away.
But I don’t think this is the end for Disney physical media. It’s just the end at Disney.
And it truly is the end of an era. Disney Home Video was the juggernaut of the home video boom. Everybody had those clamshell VHS tapes. Everybody knew the coming-soon-to-video intros. The Lion King was the bestselling VHS tape of all time with over a billion dollars in sales. It was absolutely insane what they were putting out in the ‘90s and into the 2000s. And now they’ve stepped out because the money isn’t there anymore, and Disney follows the money.
But this is a trend you’re going to see across all the major studios. Consolidation is already happening. Studio Distribution Services — the joint venture between Universal and Warner Bros. — has been around for five or six years. They’ve picked up Shout! Factory and sell everything on GRUV.com. Sony has picked up remastering and distribution for other studios, with Disney being one of the main ones. And I trust Sony. Their CEO recently said the theatrical experience needs to be better, with longer theatrical windows and fewer ads. They really seem to get what the industry needs to thrive, and physical media is one of those things.
At the same time you’re seeing licensing explode. Arrow Video is picking up Warner Bros. titles, Kino Lorber is getting Paramount and MGM, and Vinegar Syndrome is continuing to expand. I wouldn’t be surprised if Disney and Fox catalog titles start getting licensed out too. This is exactly what happened with vinyl. The major labels walked away, boutique labels filled the void, and eventually everybody just licensed it out to the people who actually knew what they were doing.
That’s what’s happening here. Physical media will go back to the hands of Vinegar Syndrome, Arrow, Kino, Radiance, Criterion, Terror Vision, Severin, Synapse — the labels that actually love this stuff. This is nearly a billion dollar industry that is gaining ground in 2026. It is not going away.
I’m not worried. It’s another domino to fall, but all those dominoes are falling toward the same conclusion — the studios back out and the labels we love take over. This is now their industry.
Don’t be a Cletus. Keep things positive. Physical media is alive and well, even when the news makes it seem like it isn’t.