Disney can finally say that its streaming services have started to turn a profit in the US and Canadian markets. One relationship of the company’s earnings from Disney Plus and Hulu revealed that both streaming services earned a combined $47 million in the latest quarter.
The profit is considered a major recovery since the entertainment giant announced last year that, in the same period, streaming generated a loss of $587 million.
However, the report makes clear that not all of Disney’s streaming was profitable in the first three months of 2024. ESPN Plus still lost $65 million, so the combined streaming earnings leave Disney with $18 million in total.
These are still values that show a reduction in losses seen in the past, which gives the impression that Disney is finally starting to prosper in the streaming market.
The entertainment company says it expects its streaming business to become profitable in the fourth quarter of this year, as it plans further investment in the business.
“Our results were largely driven by our experiences, our segments and our streaming business, which reached a major milestone with the entertainment portion of the streaming business,” said Disney CEO Bob Iger.
“We fully expect streaming to be a growth driver for the company going forward,” the executive added.
Subscribers to Disney streaming services are soaring
Disney hasn’t specified what has driven the growth of its streaming business, but progress is presumed to have come since the company launched the $7.99-per-month premium account option in December 2022 and since then it began to incentivize subscribers to contract at this level.
The company still wants a standalone ESPN streaming service in the fall of 2025, and there is still a dedicated sports streaming service with Warner Bros. Discovery and Fox, which will launch later this year.
The post Disney Plus and Hulu start to become profitable appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
