On Tuesday, May 7, 2024, The Walt Disney Company announced its earnings for the second quarter ending in March, and it came with a surprise: The company’s streaming services Disney+ and Hulu actually turned a profit.
For Disney+, this was a first.
According to the New York Times, Disney significantly exceeded Wall Street’s expectations for the company. Forecasts had anticipated Disney’s flagship streaming service to lose over $100 million in the second quarter, but–clearly–it did not.
Together, Disney+ and Hulu achieved a $47 million profit in the most recent quarter, a stark contrast to the streaming services’ combined $587 million loss reported at the same time last year.
On its own, Disney+ gained more than six million new subscribers this quarter.
“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results,” said Bob Iger, CEO of The Walt Disney Company.
“We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.”
However, all is not sunshine and pixie dust in the House of Mouse. Despite the surprising success of Disney+ and Hulu, ESPN Plus, still struggling to find its ground, lost $65 million, pulling the overall streaming total into the red by $18 million.
Despite surpassing estimates, Disney's earnings report seems to have failed to enchant investors. The company’s stock opened with a substantial tumble of nearly 10% on Tuesday morning, local time.