Exciting times for the House of Mouse! Disney has turned a corner in the third quarter of 2024, returning to profitability thanks to the soaring success of its streaming services and the box-office hit “Inside Out 2.” This marks the first time Disney’s combined streaming behemoth, consisting of Disney+, Hulu, and ESPN+, has started making money. The company’s operating income for the entertainment segment surged nearly threefold to a staggering $1.2 billion, fueled by impressive performances in the direct-to-consumer and content sales domains.
Breaking it down, Disney’s direct-to-consumer unit, which houses Disney+ and Hulu, reported a significantly reduced quarterly operating loss of $19 million, down from a hefty $505 million loss last year. Revenue for this segment climbed 15% to $5.81 billion. In total, Disney raked in $2.62 billion, equating to $1.43 per share, a massive turnaround from last year’s $460 million loss.
The key driver behind this success? The universal appeal of “Inside Out 2,” which is now the highest-grossing animated film in history. This sequel gave Disney+ a major boost, spurring over 100 million views worldwide just from its teaser trailer, and generating more than 1.3 million new sign-ups for the service.
However, it wasn’t just the streaming services that buoyed Disney’s fortunes. The company’s Experiences Division also saw a 3% revenue uptick in the third quarter. While domestic parks and experiences took a slight hit due to rising costs and inflation, international operations showed positive growth. Nonetheless, Disney cautioned investors about continued moderation in demand across its domestic parks and some cyclical softening in China and Disneyland Paris.
In corporate news, Disney settled its simmering conflict with Florida Gov. Ron DeSantis regarding the future development of Walt Disney World. The resolution includes Disney’s commitment to invest $17 billion in the resort over the next two decades.
What are your thoughts on Disney’s triumphant return to profitability and the future of its streaming services and theme parks? Share your comments below and don’t forget to share this story with fellow Disney enthusiasts!
Source: vinnews.com
