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Disney profitable for first time with streaming content
In our country, we are most familiar with Disney+, but beyond the pond, ESPN Plus and Hulu are also available to users as part of Disney's streaming services. They just released their third quarter results and revealed that for the first time all three services turned profitable for Disney. They earned $47 million.
Like other streaming service providers, Disney has struggled to make its streaming business profitable. At the same time last year, Disney Plus, ESPN Plus and Hulu posted losses of $512 million. Things started to turn around last quarter, when Disney Plus and Hulu turned a profit, but losses at ESPN Plus kept Disney's entire streaming business from breaking even.
"It was a strong quarter for Disney, driven by strong results in the entertainment segment, both at the box office and in DTC, as we achieved profitability for all of our combined streaming businesses for the first time and exceeded our previous guidance for the quarter," Disney said in a statement. CEO Bob Iger.
Meanwhile, Disney Plus gained just under 1 million subscribers in the US and Canada, bringing its total to 54.8 million. The number of Hulu subscribers also increased to 51.1 million, compared to 50.2 million in the previous quarter. Although subscriber growth has remained relatively flat, Disney is still looking for ways to make more money from its existing user base.
On Tuesday, Disney announced another price increase affecting Disney Plus, Hulu and ESPN Plus. Disney has consistently raised the prices of its streaming services over the past few years, with Disney Plus and Hulu going up around the same time last year and in 2022. Disney also plans to limit password sharing, similar to what Netflix has already done.
