Disney's streaming business reports first-ever profit
What's the story
Disney's streaming platforms, including Disney+, Hulu, and ESPN Plus, have recorded their first-ever profit.
The company's Q3 earnings report disclosed a profit of $47 million from these services.
This is a significant improvement compared to the same period last year when they posted a combined loss of $512 million.
The journey toward profitability has been challenging for Disney, reflecting difficulties experienced by other streaming platforms as well.
Performance breakdown
Individual profits and losses
In the previous quarter, both Disney+ and Hulu reported profits. However, ESPN Plus's losses prevented the overall streaming business from becoming profitable.
Disney CEO Bob Iger expressed his satisfaction with these results, stating that it was a strong quarter for Disney due to excellent results in their Entertainment segment at the box office and in DTC (direct-to-consumer).
User expansion
Subscriber growth contributes to success
Iger further noted that they achieved profitability across their combined streaming businesses for the first time, a quarter ahead of their previous guidance.
The growth in subscribers also played a significant role in this success.
Disney+ added nearly one million subscribers from the US and Canada during this quarter, bringing its total subscriber count to 54.8 million.
Hulu's subscriber base also grew, reaching 51.1 million from 50.2 million in the previous quarter.
Revenue strategies
Price hikes across streaming services
Despite relatively stable subscriber growth rates, Disney is exploring methods to boost revenue from its existing user base.
One such approach involves price increases across its streaming services.
Disney has also announced an unexpected hike in prices for plans across Disney+, Hulu, and ESPN Plus.
This isn't the first time Disney has implemented such a strategy. Both Disney+ and Hulu experienced price increases around the same time last year and in 2022.