Disney Plus and Hulu Post First Profit, but ESPN Plus Still Lags Behind

Disney Plus and Hulu have posted a profit for the first time, with both streaming services making $47 million combined in the latest quarter. This is a significant improvement from the $587 million loss reported at the same time last year. Despite this success, ESPN Plus still lost $65 million, resulting in a combined streaming earnings deficit of $18 million.

Disney CEO Bob Iger is optimistic about the future of its streaming business and believes it will become profitable in the fourth quarter of this year. He highlighted the importance of the streaming business during an earnings call, stating that it was a significant driver in the positive results for the quarter.

In recent months, Disney Plus has added 7.9 million subscribers in the US and Canada, bringing total subscribers to 54 million. The company launched a combined Disney Plus and Hulu app in March and plans to integrate ESPN Plus into the app as well. During an earnings call, Iger announced that ESPN Plus will have a tile on Disney Plus, allowing all subscribers access to live games and studio programming.

While Disney did not specify exactly why their streaming business has turned around, it is likely due to growth of their ad-supported tier. The company launched an affordable option at $7.99 per month last December 2022 and has been encouraging subscribers to choose this tier. Disney’s deal with cable provider Charter helped drive growth of this tier which ended up with 22.5 million subscribers by end of quarter .

Looking ahead, Disney plans to launch a standalone ESPN streaming service in fall 2025 as well as dedicated sports streaming service later this year in partnership with Warner Bros Discovery and Fox. Disney’s success in its streaming business indicates that it is well-positioned for future growth and profitability .