Disney’s Streaming Business Nears Profitability and Grows Subscribers By Over 6 Million
Disney+ has been racking up subscribers since it debuted in 2019, making it a top competitor with other streaming services like Netflix and Amazon Prime. Although, we have seen the numbers fluctuate up and down more recently.
Photo: Disney
Disney likes to give an update on their subscriber numbers during their quarterly earnings calls, and today is that day! So, did Disney+ gain a lot of new subscribers due to things like Taylor Swift: The Eras Tour now being on the service? Let’s find out.
Disney’s Streaming Business Nears Profitability
The big news coming out of The Walt Disney Company’s Q2 Earnings Call was that the entertainment portion of Disney’s direct-to-consumer business has finally turned a profit, months ahead of schedule.
Overall, the entertainment portion of Disney’s streaming business (which incorporates Disney+ and Hulu but not ESPN) posted a quarterly operating income of $47 million. That number was a drastic increase from the $587 million that the business lost a year ago.
Photo: Disney
According to Bob Iger, the company expects the overall streaming business to reach profitability by Q4 of this year.
“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results,” CEO Bob Iger said in a prepared statement.
Photo: Disney+
While today’s results were strong. Iger warned that the company expects a softer Q3, with Disney’s India business dragging the unit down. Overall, the company anticipates a loss in Q3 before returning to profitability in Q4.
Disney+ Added More Subscribers
Disney’s streaming business was able to deliver not only profit in Q2 but also increased subscribers.
In total, Disney+ core subscribers increased by more than 6.3 million in the second quarter. Domestically, the numbers were even better, with 8 million new subscribers signing up.
NBC News
Upon his return to the company in 2022, Bob Iger was tasked with turning around Disney’s streaming business and reaching profitability.
While the company still has a little way to go to reach that goal, everything looks to be on, if not ahead, of schedule.
Photo: Apple
Stay tuned for more Disney news and updates!
