Disney+ and Hulu are Profitable Again, ESPN+ Not So Much

The Walt Disney Company’s streaming business was profitable in the most recent quarter, following the integration of Disney+ and Hulu. But both services saw tiny subscriber changes, and the firm didn’t report subscriber numbers for ESPN+, which will also be integrated into Disney+ in the coming year.

The Walt Disney Company reported a net income of $3.1 billion on revenues of $23.2 billion in the quarter ending June 29, 2024. The firm had reported a net loss in the year-ago quarter, but revenues are up 4.5 percent.

“Our performance in Q3 demonstrates the progress we’ve made against our four strategic priorities across our creative studios, streaming, sports, and experiences businesses,” Walt Disney Company CEO Robert Iger said. “This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC [direct to consumer, i.e. streaming], as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance.”

As noted, Disney’s combined streaming platforms–Disney+, Hulu, and ESPN+–were collectively profitable for the first time, with an operating profit of $47 million. But that was thanks to Disney+ and Hulu: ESPN+ delivered a net loss of $19 million in the quarter.

Disney moved ESPN+ under its sports division, so it didn’t provide separate subscriber numbers for the quarter, making full comparisons with previous quarters impossible. But Disney+ ended the quarter with 54 million subscribers, up 1 percent quarter-over-quarter, and Disney+ Core subscribers (excluding Hotstar in India) also grew 1 percent, to 118.3 million. Total Hulu subscribers are now 51.1 million, up 2 percent.

Looking ahead, Disney expects a solid quarter for its streaming businesses, with similar profitability for the quarter and full fiscal year. Unfortunately, Disney will raise prices in the quarter: The ad-free version of Disney+ will cost $16 per month starting in October, up from $14. And the ad-supported version is going up to $10 per month, from $8. Hulu and ESPN+ prices are also going up.