The Walt Disney Company announced robust financial results for its second fiscal quarter ending March 29, 2025, with its Direct-to-Consumer (DTC) segment, encompassing Disney+ and Hulu, delivering a combined operating income of $336 million, a significant leap from the $47 million recorded in the same quarter of fiscal 2024. (Note Disney starts its calendar year right before at the end of October each year for tax purpose.) This performance underscores Disney’s strategic focus on expanding its streaming platforms, which now boast 180.7 million subscriptions globally, up 2.5 million from the prior quarter.
Disney+ saw its subscriber base grow to 126.0 million, a 1.4 million increase from Q1 fiscal 2025, driven by competitive pricing strategies and a compelling content slate, including carryover successes like Mufasa: The Lion King and Moana 2. Hulu, meanwhile, reached 54.7 million subscribers, with a 2% sequential increase, fueled by its diverse offerings, including the Hulu Live TV + SVOD bundle. The DTC segment’s revenue rose 8% to $6.118 billion, reflecting higher subscription fees, increased advertising revenue, and subscriber growth, despite challenges such as unfavorable foreign exchange impacts and the absence of Star India’s contributions following its joint venture formation with Reliance Industries.
Hulu + Live TV lost 200,000 subscribers in the 1st three months of 2025. The live TV service ended the year with 4.4 million subscribers down from 4.6 million at the end of 2024.
The profitability surge was attributed to several factors. Subscription revenue grew due to pricing adjustments and a larger subscriber base, while advertising revenue increased due to higher impressions, though tempered by lower rates. Disney+’s domestic average monthly revenue per paid subscriber rose from $7.99 to $8.06, and internationally from $7.19 to $7.52, signaling effective monetization strategies. Hulu’s Live TV + SVOD offering saw its average revenue per subscriber climb to $99.94, though its SVOD-only segment dipped slightly to $12.36 due to reduced advertising revenue.
Despite increased programming and technology costs, Disney’s DTC segment is poised for further expansion, with guidance projecting a modest subscriber increase for Disney+ in Q3 fiscal 2025. The company’s broader Entertainment segment, which includes DTC, reported a 61% operating income increase to $1.258 billion, underscoring the streaming platforms’ pivotal role in Disney’s portfolio.
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