The duo of Disney+ and Hulu has emerged as quite profitable for Disney. According to the Mouse House’s latest second fiscal quarter earnings report, the conglomerate disclosed that operating income from both OTT platforms reached $336 million, showcasing a substantial improvement from $47 million during the same period last year.
This substantial surge in Disney’s streaming business was largely driven by a rise in subscribers during the quarter ending March 29, adding over 1.4 million new users during that period.
Ever since its debut, Disney+ has been trying really hard to establish itself as Netflix’s toughest rival. Between 2022 and 2024, Disney’s direct-to-consumer (DTC) streaming division saw considerable improvement in its financial performance. The entertainment unit, which posted an operating loss of approximately $3.4 billion in 2022, shifted to profitability by 2024, generating income of roughly $143 million.
With ESPN+ under its belt, Disney’s streaming department finally became profitable in August 2024, helping keep the company’s overall operating income stable since then.
Last year, Paramount+, NBC’s Peacock, and Max (owned by Warner Bros. Discovery) also turned profitable. This shift came as these services aimed to compete more aggressively with Netflix, which has since moved away from publicly reporting subscriber counts.
Yes, the clouds of economic trouble may be darkening the skies over the US and Canada, but CEO Bob Iger remains “optimistic” about the current fiscal year.
For the fiscal quarter ending March 29, 2025 (fiscal Q2 2025), Disney’s total revenue reached $23.62 billion, marking a 7% increase. The Mouse House also reported a net income of $3.28 billion, a significant turnaround from the $20 million net loss in the same period the previous year.
This resulted in adjusted earnings per share of $1.41, a 20% rise. These strong results, driven by increased streaming profitability, successful domestic theme parks, and robust home video sales of Moana 2, surpassed analysts’ forecasts. Stay tuned for more updates.
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