Technology

Disney’s streaming business is moving closer to profitability

Disney Plus and Hulu posted a profit for the first time today. At Disney Results report The company revealed on Tuesday that both streaming services earned a combined $47 million last quarter, a huge turnaround from the $587 million loss reported at the same time last year .

But Disney’s streaming business wasn’t entirely profitable. ESPN Plus still lost $65 million, pushing its combined streaming revenue into the red by $18 million. Still, the reduced losses represent a major milestone for Disney as the company continues to invest more in streaming. The entertainment company expects its streaming business to become profitable in the fourth quarter of this year.

“Our results were driven in large part by our experiences, segments and our streaming business, which reached an important milestone with the entertainment portion of the streaming business,” Disney CEO Bob Iger said during the conference call. “We expect streaming to be a growth driver for the company in the future.”

Over the past few months, Disney Plus has added 7.9 million subscribers in the US and Canada, bringing its total number of subscribers to 54 million. The company launched its combined Disney Plus and Hulu App in March and now also plans to integrate ESPN Plus into the app. During the company’s earnings call, Iger said it will add an ESPN Plus tile to Disney Plus this fall to give “all subscribers access to select live games and studio programming” within the app.

Disney hasn’t elaborated on what sparked the shift in its streaming business, but it could be related to the growth of its ad-supported division. The company introduced and started the $7.99 per month option in December 2022 Nudge subscribers since then towards the stage. Hugh Johnston, Disney’s chief financial officer, said during today’s earnings call that the company Deal with cable provider Charter helped drive growth in its ad-supported tier this quarter, which ended with 22.5 million subscribers.

Disney also plans to launch a standalone ESPN streaming service in fall 2025, along with a dedicated sports streaming service with Warner Bros. Discovery and Fox launching later this year.

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