Disney Plus and Hulu have finally turned a profit for the first time, as revealed in Disney’s recent earnings report. The combined earnings for both streaming services were $47 million this past quarter, a significant improvement from the $587 million loss reported a year ago. However, ESPN Plus still reported a $65 million loss, which ultimately left the combined streaming earnings $18 million in the negative.
Despite ESPN Plus’s losses, the narrowing of overall losses marks a significant milestone for Disney as it continues to invest heavily in its streaming services. The company has high expectations for its streaming business, with hopes of it becoming profitable by the fourth quarter of this year. Disney CEO Bob Iger emphasized the importance of the company’s streaming business during the earnings call, indicating it as a key driver for future growth.
Over the past few months, Disney Plus has seen an increase of 7.9 million subscribers in the US and Canada, bringing the total number of subscribers to 54 million. The company recently launched a combined Disney Plus and Hulu app, with plans to integrate ESPN Plus into the app as well. Iger also announced that an ESPN Plus tile will be added to Disney Plus this fall, providing all subscribers with access to select live games and studio programming within the app.
While Disney did not specify the exact reasons for the turnaround in its streaming business, it is believed that the growth of its ad-supported tier played a significant role. The launch of the $7.99 per month option in December 2022, along with partnerships like the one with cable provider Charter, has helped drive the growth of its ad-supported tier to 22.5 million subscribers. In addition to these successes, Disney is planning to launch a standalone ESPN streaming service in the fall of 2025, as well as a dedicated sports streaming service in collaboration with Warner Bros. Discovery and Fox later this year.
Disney’s streaming services have reached a notable milestone by turning a profit for the first time. Despite challenges with ESPN Plus, the overall positive results indicate a bright future for Disney’s streaming business. With ongoing subscriber growth, integration of services, and strategic partnerships, Disney is well-positioned to capitalize on the booming streaming industry and continue its success in the years to come.
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