In a recent earnings report released by Disney, it was revealed that both Disney Plus and Hulu posted a profit for the first time. The combined earnings from these streaming services amounted to $47 million in the past quarter. This is a significant improvement from the $587 million loss reported at the same time last year. However, it is important to note that ESPN Plus still experienced losses, amounting to $65 million, which dragged the combined earnings $18 million in the negative territory.
Despite the challenges faced by ESPN Plus, Disney is committed to investing more in its streaming business. The company expects its streaming business to become profitable in the fourth quarter of this year. Disney CEO Bob Iger emphasized the importance of streaming as a growth driver for the company in the future. The company has been focusing on expanding its subscriber base and improving the overall streaming experience for its customers.
Over the past few months, Disney Plus added 7.9 million subscribers in the US and Canada, bringing the total number of subscribers to 54 million. The company launched a combined Disney Plus and Hulu app in March, with plans to integrate ESPN Plus into the app as well. This integration will allow all subscribers to access live games and studio programming within the app. The move is aimed at improving the overall user experience and increasing engagement with the streaming services.
One of the factors that may have contributed to the turnaround of Disney’s streaming business is the growth of its ad-supported tier. The company introduced a $7.99 per month option in December 2022 and has been promoting it to subscribers. A partnership with the cable provider Charter also helped drive the growth of the ad-supported tier, which now has 22.5 million subscribers. Disney’s chief financial officer, Hugh Johnston, highlighted the importance of partnerships in driving the growth of the streaming business.
Looking ahead, Disney has ambitious plans for its streaming business. The company aims to launch a standalone ESPN streaming service in the fall of 2025, along with a dedicated sports streaming service in partnership with Warner Bros. Discovery and Fox later this year. These initiatives demonstrate Disney’s commitment to expanding its presence in the streaming market and capitalizing on the growing demand for online entertainment.
The profitability of Disney Plus and Hulu is a significant milestone for Disney as it continues to invest in its streaming business. Despite challenges faced by ESPN Plus, Disney remains optimistic about the future of its streaming services. By focusing on subscriber growth, integration, and partnerships, Disney is well-positioned to succeed in the competitive streaming market.
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