Disney Reports Strong Q4 2024 Earnings as Streaming Services Remain Profitable

Fourth-quarter earnings are out for entertainment giant Disney. The company released solid numbers for Q4 2024, with its streaming business not only pulling its weight, but actually making a profit.

Disney’s total revenue reached $22.57 billion, better than analyst’ expectations of $22.45 billion. Net income climbed to $460 million from $264 million in the same period last year. Earnings per share, after adjustments, came in at $1.14.

From the TV networks, films, and streaming services, Disney reported a 14% jump in revenue to $10.83 billion. The popular movies “Inside Out 2” and “Deadpool & Wolverine” were released during the summer, adding $316 million to the bottom line. Overall, the entertainment segment cleared $1.1 billion in profit for the quarter.

“Our solid performance in the fiscal fourth quarter reflected the success of our strategic efforts to improve quality, innovation, efficiency, and value creation,” stated Disney CEO Bob Iger, per the earnings statement.

The Growth of Disney’s Streaming Services

Under the mouse house roof are direct-to-consumer (DTC) streaming services Disney+, ESPN+, and Hulu. These platforms produced $321 million in operating income in the last quarter. In comparison, Disney took a $387 million loss on the segment in Q4 2023.

Many streaming services have introduced ad-supported subscription plans, and Disney is no different. The growth of this tier is on the upswing as consumers seek out cheaper entertainment options. According to Disney executives, over 50% of new U.S. Disney+ subscribers chose a lower-cost, ad-supported plan.

With so many people giving Disney permission to include commercials, advertisers are lining up and paying big money to get in front of them. Ad revenue for the streaming segment went up 14%, with Disney+ leading the charge.

Third-quarter earnings, released in August, for Disney’s DTC unit revealed it was in the black for the first time ever. By the end of the period, operating profit came in at $47 million compared to a $512 million loss in Q3 2023.