For the first time, Disney+ and Hulu became profitable in the second quarter of 2024. Disney+ and Hulu ended the quarter with a $47 million profit. However, when combined with ESPN+, the business lost $18 million in the quarter. Disney says its streaming business with ESPN+ will become profitable in the 4th quarter of fiscal 2024. This move to profitability now on Hulu and Disney+ was a surprise for many who expected it to continue to lose money.
Hulu added 1.2 million subscribers but Disney+ lost 1.3 million subscribers. Disney did say they expect Disney+ to add between 5.5 and 6 Million subscribers in the second quarter of 2024.
This all comes as Disney+ is now available to Spectrum subscribers as a part of its partnership to offer free Disney+ to Spectrum TV customers.
In a statement, Disney CEO Bob Iger said:
Our strong performance in Q2, with adjusted EPS up 30% compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.
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. We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.
Profitability has been Disney’s main goal for streaming, and it seems they are reaching it. Other areas like the theme parks division was up and operating income was also up in during the 2nd quarter.
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