Disney's streaming business turns profitable for first time
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2 months ago 06:00:31am Television

Disney’s streaming business turns profitable for first time

New Delhi, 09-August-2024, By IBW Team

Disney's streaming business turns profitable for first time

Disney returned to a profitable third quarter as its combined streaming business started making money for the first time, along with a very strong showing in theaters for the movie ‘Inside Out 2.’

Operating income for the entertainment segment, which includes its movie studio and parts of its television wing, nearly tripled to $1.2 billion. Disney’s run at the box office continues with ‘ Deadpool & Wolverine, ‘ giving the company the top two films of the year, Associated Press reported on Wednesday.

The Walt Disney Co. said Wednesday that its direct-to-consumer business, which includes Disney+ and Hulu, reported a quarterly operating loss of $19 million, which was much smaller than its loss of $505 million a year earlier. Revenue climbed 15 percent to $5.81 billion.

The results were announced a day after Disney said that it would be boosting prices for Disney+, Hulu, and ESPN+, starting on Oct. 17. Disney+ and Hulu will each cost $9.99 a month with ads, a $2 increase for each plan. The ad-free version of Disney+ will run $15.99 monthly, a $2 uptick, while Hulu will be $1 more, at $18.99 monthly for the ad-free version. ESPN+, which is only available with ads, will have a monthly cost of $11.99, a $1 increase.

Disney earned $2.62 billion, or $1.43 per share for the period ended June 29. A year earlier it lost $460 million, or 25 cents per share.

Revenue for the Burbank, California, company rose 4 percent to $23.16 billion, beating Wall Street’s estimate of $22.91 billion.

Disney said that the decline in operating revenue for domestic parks and experiences was because of increased costs driven by inflation, technology spending, and new guest offerings.

The company made $254 million in operating income from content sales and licensing helped by the strong performance of ‘Inside Out 2’ in theaters, which is now the highest-grossing animated film of all time, with more than $1.5 billion generated globally.

Disney said Wednesday that the original ‘Inside Out,’ which came out in 2015, helped drive more than 1.3 million Disney+ sign-ups and generated over 100 million views worldwide since the first ‘Inside Out 2’ teaser trailer dropped.

The combined streaming businesses, which include Disney+, Hulu, and ESPN+, achieved profitability for the first time thanks to a strong three months for ESPN+ and a better-than-expected quarterly performance from the direct-to-consumer unit.

CEO Bob Iger and Senior EVP and Chief Financial Officer Hugh Johnston said in prepared remarks that ESPN had its most-watched third quarter in primetime in a decade among adults aged 18-49. This was due to strong viewership in several areas, including the NBA finals, WNBA draft NHL playoffs, and Stanley Cup finals.


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