Streaming Services on the Rise: Disney Plus and Hulu Make Profit for First Time in a Year

Disney Plus and Hulu both turned a profit for the first time in the past quarter, with the two streaming services making $47 million combined. This marks a significant turnaround from the $587 million loss reported at the same time last year. However, ESPN Plus still lost $65 million, resulting in a combined streaming earnings loss of $18 million. Despite this setback, Disney is optimistic about the future of its streaming business.

Disney CEO Bob Iger emphasized the importance of streaming during an earnings call, stating that they fully expect it to be a growth driver for the company in the future. The entertainment company expects its streaming business to become profitable in the fourth quarter of this year.

Disney Plus added 7.9 million subscribers in the US and Canada over the past few months, bringing the total number of subscribers to 54 million. The company recently launched a combined Disney Plus and Hulu app, with plans to integrate ESPN Plus into the app as well. A new ESPN Plus tile will be added to Disney Plus this fall, providing all subscribers with access to select live games and studio programming within the app.

One factor that may have contributed to Disney’s improved performance is its ad-supported tier. The company introduced a $7.99 per month option in December 2022 and has been encouraging subscribers to choose this tier. Disney’s deal with cable provider Charter helped drive growth of its ad-supported tier, which ended