In a surprising turn of events, Disney Plus and Hulu have finally managed to secure a profit for the first time ever. The latest earnings report from Disney revealed that the two streaming services combined made $47 million in the last quarter. This marks a significant improvement from the $587 million loss reported at the same time last year.
Despite the overall positive performance of Disney’s streaming business, ESPN Plus continues to be a burden. The sports streaming service lost $65 million this quarter, pulling the combined streaming earnings down to $18 million in the red. However, Disney remains optimistic about the future profitability of its streaming business and expects to see positive results by the end of the year.
Over the past few months, Disney Plus has seen a significant increase in subscribers, adding 7.9 million in the US and Canada alone. The total number of subscribers now stands at 54 million. The company recently launched a combined Disney Plus and Hulu app, with plans to integrate ESPN Plus into the platform as well. This move aims to provide all subscribers with access to live games and studio programming within a single app.
One of the key factors contributing to the turnaround of Disney’s streaming business could be the growth of its ad-supported tier. Priced at $7.99 per month, this option was introduced in December 2022 and has been steadily gaining popularity. Disney’s deal with cable provider Charter has played a significant role in driving the growth of the ad-supported tier, which now boasts 22.5 million subscribers.
Looking ahead, Disney has ambitious plans for its streaming services. The company is set to launch a standalone ESPN streaming service in 2025, in addition to partnering with Warner Bros. Discovery and Fox for a dedicated sports streaming service later this year. With a strong focus on streaming as a key growth driver, Disney remains poised to dominate the ever-evolving entertainment landscape.
While Disney Plus and Hulu have made significant strides in securing their first profits, challenges still remain, particularly with ESPN Plus. However, with a clear strategy for subscriber growth and the introduction of new services and features, Disney’s streaming business is on track to becoming a major revenue generator for the company.
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