In a milestone that bodes well for its streaming future, The Walt Disney Company has reported its first profitable quarter for streaming services, surpassing earlier projections. For the third quarter of fiscal 2024, Disney posted $47 million in operating income for its direct-to-consumer segment—a sharp turnaround from the $512 million loss in the same period last year.
This achievement comes earlier than expected as Disney shifts from prioritizing subscriber growth to profitability for its streaming businesses. While Disney+ and Hulu combined for a $19 million loss on $5.8 billion in revenue, gains at ESPN+ more than offset that figure to drive the segment into the black. Disney CEO Bob Iger expressed confidence in the road ahead at the company’s recent earnings call, citing strong performance across key divisions.
Not only did Disney+ end the quarter with over 118 million subscribers, just shy of last year’s total, but blockbuster box office from Pixar’s Inside Out 2 provided a major boost. The sequel’s $1.56 billion global haul made it the highest-grossing animated film ever and topped 1.3 million new Disney+ signups. Its success helped triple earnings at Disney’s entertainment segments to $1.2 billion.
Along with announcing the streaming milestone, Disney revealed price hikes coming to most of its streaming plans effective October 17. The ad-supported Disney+ tier will rise from $7.99 to $9.99 monthly domestically, while the ad-free option jumps from $13.99 to $15.99. This second price increase in as many years underscores streaming’s rising costs industry-wide.
As Disney continues reshaping its media strategy around streaming, direct-to-consumer, and theme parks, these latest financial results demonstrate the company’s ability to adapt in challenging times—signs that bode well as the industry’s evolution continues apace.
