In a landmark achievement, Disney has finally reported a profit from its streaming services, marking its first profitable quarter since the inception of Disney+. From April to June 2024, the direct-to-consumer segment saw a significant revenue boost, reaching profitability a quarter earlier than CEO Bob Iger had anticipated.
Despite adding a modest 700,000 subscribers in the second calendar quarter, Disney+ now boasts a total of 118.3 million subscribers. The company’s growth strategy remains steady, expecting “modest” subscriber growth over the summer. Interestingly, Disney+ Hotstar in India experienced a slight dip, losing 500,000 subscribers, bringing its total to 35.5 million.
On the financial front, Disney surpassed Wall Street expectations with revenue of $23.2 billion and an earnings per share of $1.39. This leap in financial performance is attributed to several factors, including the phenomenal success of “Inside Out 2”. The sequel not only pulled in over $1.5 billion at the global box office but also set a record for the highest domestic haul for a G/PG-rated movie, not adjusted for inflation.
Hulu also showed solid growth, adding 900,000 subscribers to reach a total of 51.1 million. On the other hand, streaming TV saw mixed results, with “The Acolyte” performing reasonably well and “Bluey” continuing to be a fan favorite.
Disney recently announced another price hike for its streaming services starting in October. This move aims to sustain the profitability trend, ensuring that both Disney+ and ESPN+ remain lucrative ventures.
As always, we invite our readers to share their thoughts in the comments section below. What do you think about Disney’s recent performance? Are you excited about future releases like “Deadpool & Wolverine”? Let’s get the discussion rolling!
Source: Tony Maglio
