Disney’s streaming business has finally reached profitability for the first time since its launch in late 2019, despite losing over $11 billion in the process. This achievement came early due to cost-cutting and the success of Hulu programs like “Shogun” and “The Bear”. The streaming unit earned $47 million in its second fiscal quarter, a vast improvement from the previous year’s loss of $587 million.
Despite this progress, Disney is projected to lose money this quarter due to Disney+ Hotstar in India. However, it is expected to return to profitability in the autumn. CEO Bob Iger expressed pride in reaching this milestone and remains optimistic about the future of the business. He attributed the strong results to Disney’s experiences division, particularly its success with theme parks outside of the US like Shanghai Disney.
Iger also emphasized strategic investments in the experiences business to drive growth in both the near and long term. The latest earnings report marked a significant moment for Iger, as it was his first since successfully defending against a proxy challenge from Trian Partners’ Nelson Peltz, who sought two board seats. Iger deemed these results as evidence of the positive outcomes from the turnaround and growth initiatives implemented last year.
Looking ahead, Iger’s strategic plan for rejuvenating movie studios will be tested with upcoming releases such as Kingdom of Planet of Apes this month, Pixar’s Inside Out 2 in June, and Marvel’s Deadpool & Wolverine in July.
