One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
Disney Hits Revenue Milestone For Streaming Division
The Walt Disney Company exhibited details of its Disney+ streaming service at a Disney expo in August. The service goes live Nov. 12.
(
Jesse Grant
/
Getty Images for Disney
)
Topline:
Disney reported quarterly earnings on Tuesday, growing revenue in the quarter to $22.1 billion. It also achieved its first-ever profit in its Disney Streaming division (minus ESPN+).
Why it matters: Disney is the bellwether for the overall health of the traditional studio system headquartered in Los Angeles. Its progress in transitioning to digital, direct-to-consumer services indicates how well that shift is progressing.
The streaming good news: Disney+ added 8 million U.S. subscribers between January and March 2024, the highest growth since its launch. The Disney Streaming division, which does not include ESPN+, reported a $47 million profit in the quarter, a first. If one includes the sports streamer, that number swings to an $18 million loss. Disney achieved this milestone with a mix of price hikes and spending cuts. It only launched a couple of new series and debuted Taylor Swift’s concert movie.
The linear TV bad news: Revenue dropped 8% for the quarter and profitability dipped 22%. Cord-cutting and lower ad revenue contributed to this decline.
Is streaming’s growth outpacing linear’s losses?: Technically yes. First quarter linear TV losses were $234 million year over year, but streaming was up $659 million. But when you consider profitability, operating income for linear is still more than $750 million while streaming, as noted above, generated $47 million. So that presents a more complex picture.
What to watch next: Disney executives warned that the path to consistent profitability in the company’s streaming business will be uneven. But look for a password-sharing crackdown later this year and potentially more price hikes to put Disney’s streaming business on surer footing.
For more . . . read the full story on The Ankler.
Sponsored message
This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
