Disney’s streaming business turned a profit for the first time
Illustration by Alex Castro / The Verge
Disney’s streaming business has finally become profitable. In its Q3 earnings results released on Wednesday, the company reported making $47 million off Disney Plus, Hulu, and ESPN Plus.
Like other streamers, Disney has struggled with making its streaming business profitable. At the same time last year, Disney Plus, ESPN Plus, and Hulu recorded a $512 million loss. Things started to turn around last quarter when both Disney Plus and Hulu posted a profit, but losses at ESPN Plus prevented Disney’s overall streaming business from crossing the line into profitability.
“This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance,” says Disney CEO Bob Iger in a statement.
Meanwhile, Disney Plus added just under 1 million subscribers in the US and Canada, bringing its total to 54.8 million. Hulu subscribers also grew to 51.1 million, compared to 50.2 million last quarter. Even though its subscriber growth remained relatively flat, Disney is still looking for ways to make more money off its existing user base.
On Tuesday, Disney announced a surprise price hike affecting plans across Disney Plus, Hulu, and ESPN Plus. Disney has consistently raised the prices of its streaming services over the past couple of years, with Disney Plus and Hulu going up in price around the same time last year and in 2022. Disney is also planning a crackdown on password sharing.
Illustration by Alex Castro / The Verge
Disney’s streaming business has finally become profitable. In its Q3 earnings results released on Wednesday, the company reported making $47 million off Disney Plus, Hulu, and ESPN Plus.
Like other streamers, Disney has struggled with making its streaming business profitable. At the same time last year, Disney Plus, ESPN Plus, and Hulu recorded a $512 million loss. Things started to turn around last quarter when both Disney Plus and Hulu posted a profit, but losses at ESPN Plus prevented Disney’s overall streaming business from crossing the line into profitability.
“This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance,” says Disney CEO Bob Iger in a statement.
Meanwhile, Disney Plus added just under 1 million subscribers in the US and Canada, bringing its total to 54.8 million. Hulu subscribers also grew to 51.1 million, compared to 50.2 million last quarter. Even though its subscriber growth remained relatively flat, Disney is still looking for ways to make more money off its existing user base.
On Tuesday, Disney announced a surprise price hike affecting plans across Disney Plus, Hulu, and ESPN Plus. Disney has consistently raised the prices of its streaming services over the past couple of years, with Disney Plus and Hulu going up in price around the same time last year and in 2022. Disney is also planning a crackdown on password sharing.