In a surprising turn of events, Disney Plus and Hulu have managed to post a profit for the first time, marking a significant milestone for the company. The earnings report released by Disney revealed that both streaming services made a combined $47 million in profit this past quarter, a substantial improvement from the $587 million loss reported during the same period last year. This positive outcome comes at a time when Disney has been heavily investing in its streaming business, with ESPN Plus still lagging behind and reporting a loss of $65 million.
Despite the challenges faced by ESPN Plus, Disney remains optimistic about the future profitability of its streaming business. Disney CEO Bob Iger expressed confidence during the earnings call, stating that the company expects its streaming business to become profitable by the fourth quarter of this year. The significant growth in subscribers, with an addition of 7.9 million in the US and Canada, brings the total number of subscribers to 54 million. This growth is a testament to the popularity of Disney’s streaming services and bodes well for its future prospects.
One key factor contributing to the success of Disney’s streaming business is the integration of its various services. The launch of the combined Disney Plus and Hulu app in March has been well-received, with plans to further integrate ESPN Plus into the app. Adding an ESPN Plus tile to Disney Plus this fall will provide subscribers with access to live games and studio programming, enhancing their overall viewing experience. This move towards integration is expected to drive further growth and engagement among subscribers.
Another significant factor that may have contributed to the turnaround of Disney’s streaming business is the growth of its ad-supported tier. The introduction of the $7.99 per month option in December 2022 has attracted a sizable number of subscribers, with the company ending the quarter with 22.5 million ad-supported tier subscribers. Disney’s partnership with the cable provider Charter has played a crucial role in driving the growth of this tier, further solidifying its position in the streaming market.
Looking ahead, Disney has ambitious plans for its streaming business, including the launch of a standalone ESPN streaming service in 2025. Additionally, the company is set to introduce a dedicated sports streaming service in partnership with Warner Bros. Discovery and Fox later this year. These strategic moves demonstrate Disney’s commitment to expanding its streaming empire and capitalizing on the growing demand for online entertainment.
Disney’s foray into the streaming market has proven to be a lucrative endeavor, with the company poised for further growth and success in the coming years. The integration of its services, the popularity of its ad-supported tier, and the introduction of new streaming platforms all point towards a bright future for Disney’s streaming empire.
Leave a Reply