Disney Plus and Hulu have turned a profit for the first time in their history. Disney recently released its earnings report, showcasing a combined profit of $47 million this past quarter. This marks a significant improvement from the $587 million loss reported during the same period last year. However, ESPN Plus continues to operate at a loss, contributing to a combined streaming earnings deficit of $18 million.
Despite the mixed results, Disney remains optimistic about the future profitability of its streaming business. Disney CEO Bob Iger highlighted the company’s commitment to investing in streaming as a growth driver. The company projects that its streaming business will become profitable by the fourth quarter of this year.
In the past few months, Disney Plus has seen a significant increase in subscribers, with a total of 54 million in the US and Canada. The launch of the combined Disney Plus and Hulu app has also been a success. Disney plans to integrate ESPN Plus into the app, providing subscribers with access to live games and studio programming. This move aims to enhance the overall streaming experience for users.
One of the factors contributing to the turnaround of Disney’s streaming business is the growth of its ad-supported tier. The introduction of a $7.99 per month option has been successful in attracting subscribers. Additionally, partnerships with cable providers, such as Charter, have helped drive the growth of the ad-supported tier. Disney’s chief financial officer, Hugh Johnston, emphasized the importance of these partnerships in expanding the subscriber base.
Looking ahead, Disney has ambitious plans for its streaming services. The company intends to launch a standalone ESPN streaming service in 2025. Furthermore, a dedicated sports streaming service in collaboration with Warner Bros. Discovery and Fox is set to launch later this year. These initiatives demonstrate Disney’s commitment to expanding its streaming portfolio and capturing new audiences.
The profitability of Disney Plus and Hulu represents a significant milestone for the company’s streaming business. Despite challenges such as ESPN Plus operating at a loss, Disney’s strategic investments and partnerships have paved the way for future growth and success in the competitive streaming landscape.
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