Disney Streaming Beats Expectations as Bob Iger’s Plan Comes to Fruition
This morning, all eyes were once again on Disney, as Bob Iger presented the company’s Q2 FY2025 earnings.
While the presentation’s focus drastically shifted after Disney announced that it was bringing a new theme park and resort to Abu Dhabi, the other big revelation was the company’s streaming success.
Photo: Disney+
After reaching profitability last year, Disney has made it clear that it wants streaming to be a growth sector. So far, Bob Iger’s plan is already paying dividends.
Streaming Shines in Latest Earnings Report
Heading into today’s earnings call, Disney expected to see a decline in Disney+ subscribers due to recent price increases and standard churn. However, the company hoped profitability would continue to rise despite the customer loss.
For their part, Wall Street expected Disney to report 123.35 million core Disney+ subscribers.
(Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
Amazingly, Disney managed to increase the Disney+ global subscriber count to 126 million. When factoring in Hulu, 180.7 million people now subscribe to Disney streaming services, an increase of 2.5 million from last quarter.
During the company’s earnings call, Iger noted that the addition of the Hulu tile on Disney+ has helped reduce churn and increase engagement.
The Bottom Line
Driven by the better-than-expected subscriber numbers and the recent price increases, Disney’s direct-to-consumer business saw its revenue grow to $6.12 billion, up 8% over last year.
Walt Disney Company
Perhaps more importantly, direct-to-consumer operating income increased yearly from $289 million to $336 million.
A few short years ago, Disney was losing billions of dollars on streaming. Under the steady hand of Bob Iger, the company has now managed to decrease costs, improve its product, and turn streaming into a pillar of its financial success.
Photo: CNBC
The Disney streaming turnaround has been nothing short of astounding, and it is only just beginning.
