Disney streaming success boosts earnings

Disney’s streaming business, including Disney+ and Hulu, reported a $293 million profit in the December quarter, a sharp turnaround from a $138 million loss a year earlier. 

The earnings exceeded analyst expectations by over $100 million.

Disney+ and Hulu had 178 million paid subscribers at the end of December, up from 177.3 million in the previous quarter. Price increases helped boost revenue, and subscriber losses were lower than expected.

Box office and studio growth
The success of Moana 2, which has grossed over $1 billion, helped Disney’s studio business post a $312 million profit, compared to a $224 million loss the previous year.

The company’s theatrical releases performed well, contributing to overall revenue growth.

Sports and theme parks strategy
CEO Bob Iger highlighted Disney’s advantage in live sports, with plans to add exclusive content to Disney+. A direct-to-consumer ESPN service is set to launch this fall. 

Meanwhile, theme park earnings remained steady at $3.1 billion, but traditional TV revenue fell 11%. Despite challenges, Disney remains focused on streaming expansion and profitability.