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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.
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Jesse Grant
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Getty Images for Disney
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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.
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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.
This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
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