Disney Plus and Hulu have both achieved profitability for the first time, with a combined earnings of $47 million in the past quarter. This marks a significant turnaround from the $587 million loss reported at the same time last year. However, ESPN Plus still lost $65 million, resulting in a combined streaming earnings loss of $18 million. Despite this setback, Disney is optimistic about the future of its streaming business and expects it to become profitable in the fourth quarter of this year.
Disney CEO Bob Iger emphasized the importance of streaming during an earnings call, stating that they fully expect it to be a growth driver for the company in the future. The entertainment company added 7.9 million subscribers in the US and Canada over the past few months, bringing the total number of subscribers to 54 million. Disney recently launched a combined Disney Plus and Hulu app, with plans to integrate ESPN Plus into the app as well. A new 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.
The growth of Disney’s ad-supported tier may have contributed to the improved performance of its streaming business. The company introduced a $7.99 per month option in December 2022 and has been encouraging subscribers to choose this tier. Disney’s deal with cable provider Charter helped drive growth in its ad-supported tier, which ended the quarter with 22.5 million subscribers. In addition to these developments, Disney also plans to launch a standalone ESPN streaming service in fall 2025 and a dedicated sports streaming service later this year in collaboration with Warner Bros Discovery and Fox. These initiatives indicate Disney’s continued investment and commitment to growing its streaming business in
