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Disney’s Streaming Business Finally Turns a Profit in Third Quarter 2024

August 7, 2024

Disney released third-quarter earnings this morning, and its direct-to-consumer (DTC) streaming services posted a profit for the first time. The results surpassed expectations, according to CNBC, as the company did not expect positive earnings until Q4 2024.

Disney’s streaming unit, which includes Disney+, ESPN+, and Hulu, made an operating profit of $47 million versus a loss of $512 million for the same period last year. Operating income went up 19%, reaching $4.225 billion, while total revenue hit $23.155 billion, an increase of 4%.

“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,” said Disney CEO Bob Iger, per the company’s press release.

It was ESPN+ that pushed the earnings into the black. Without the sports service, Disney would have suffered a loss of $19 million. Last quarter, Disney+ and Hulu made a profit when combined, but with ESPN+ in the mix, the streaming unit lost money.

As with earnings, customers are also increasing. In the third quarter, Disney+ gained a net 200,000 new subscribers. Meanwhile, Hulu subscribers went up 2%, from 50.2 million to 51.1 million.

While this is good news for Disney, customers are likely to be in for a shock in the next few months. Disney plans to raise subscription prices for Disney+, ESPN+, and Hulu, according to Variety.

Starting Oct. 17, Disney+ is going from $7.99 a month to $9.99 a month. The ad-free service, Disney+ Premium, will be $15.99 a month, a $2 increase. The monthly price of Hulu (with ads) will also go up by $2 to $9.99, while ad-free Hulu goes to $18.99, $1 more than it is now.

The streaming bundles will also experience a price increase. Disney Bundle Trio plans, which include Disney+, Hulu, and ESPN+, will go up $2. The basic bundle with just Disney+ and Hulu will cost $1 more per month.