Disney Plus and Hulu have recently achieved a significant milestone by posting a profit for the first time. In the latest earnings report released by Disney, it was revealed that both streaming services made a combined profit of $47 million this past quarter. This turnaround is remarkable considering the $587 million loss reported at the same time last year.
While Disney’s streaming business has shown overall profitability, ESPN Plus still remains in the red with a loss of $65 million. This has resulted in a combined streaming earnings of $18 million in the negative. Despite this, Disney remains optimistic about the future of its streaming business and expects it to become profitable in the fourth quarter of this year.
Subscriber Growth
Disney Plus has witnessed a surge in subscriber numbers over the past few months, adding 7.9 million subscribers in the US and Canada alone. This brings the total subscriber count to 54 million. The company’s decision to launch a combined Disney Plus and Hulu app in March has been successful, and now it plans to integrate ESPN Plus into the app as well.
During the earnings call, Disney CEO Bob Iger announced that ESPN Plus will be added as a tile to Disney Plus this fall. This move will give all subscribers access to select live games and studio programming within the app. Additionally, Disney has plans to launch a standalone ESPN streaming service in 2025, along with a dedicated sports streaming service in collaboration with Warner Bros. Discovery and Fox later this year.
One of the factors contributing to the turnaround of Disney’s streaming business could be the growth of its ad-supported tier. The company introduced a $7.99 per month ad-supported option in December 2022 and has been encouraging subscribers to opt for this tier. The recent deal with cable provider Charter has also helped drive the growth of the ad-supported tier, which now has 22.5 million subscribers.
Disney Plus and Hulu’s journey towards profitability in the streaming market has been challenging but rewarding. With a focus on expanding content offerings, integrating services, and growing subscriber numbers, Disney is poised to become a dominant player in the streaming industry. As the company continues to invest in streaming, it is likely to see further success and profitability in the future.