Disney’s streaming business has hit a major milestone, with the company reporting that its direct-to-consumer segment turned a profit for the first time. The media giant revealed that its streaming services, including Disney+ and Hulu, posted operating income of $47 million, a significant improvement from the $587 million loss in the previous year.
While not all streaming services were profitable, Disney is on track to achieve full streaming profitability by the fourth quarter of this year. The company’s CEO, Bob Iger, has implemented a turnaround plan that has investors feeling optimistic about Disney’s future.
In addition to the success in streaming, Disney also saw positive results in its parks business, with domestic operating income surging to $1.61 billion. However, the sports segment underperformed, with ESPN experiencing a 9% decline in operating income due to lower affiliate revenue and fewer subscribers.
Despite the challenges in the sports sector, Disney is doubling down on sports streaming with upcoming joint ventures and a separate sports streaming platform for ESPN set to launch in 2025. The company has also reportedly agreed to increase its media rights deal with the NBA to $2.6 billion.
Overall, Disney’s second quarter earnings exceeded analyst expectations, with adjusted earnings per share of $1.21 and revenue of $22.1 billion. The company raised its guidance for full-year adjusted earnings growth to 25%, showcasing its continued commitment to innovation and growth in the ever-evolving media landscape.