As part of its latest earnings report, Disney reported the first earnings from its streaming business. The company also announced sweeping price increases for its streaming services, which will take effect on October 17 for Disney+, Hulu and ESPN+.
In its earnings report for the fiscal third quarter ended June 29, 2024, Disney reported a small net profit of $47 million for its streaming operations, compared to a loss of $512 million in the same quarter last year. For the first three quarters of the year, its streaming operations reported revenue of $18.642 billion and a loss of $187 million.
Streaming revenue rose 15% year-over-year to $6.379 billion in the fiscal third quarter, but subscriber growth was relatively modest. Hulu added 900,000 new subscribers to end the quarter at 51.1 million, and Disney’s core subscribers (excluding Hotstar business) rose 700,000 globally to 118.3 million.
The improved financial results of Disney’s streaming business are due to price increases, which the company says will continue.
On October 17, Disney+’s ad-supported offering will increase 25% to $9.99, while Disney+’s ad-free offering will increase 14% to $15.99. Hulu’s ad-supported offering will increase to $9.99 and its ad-free offering to $18.99, while ESPN+ and the Disney+, Hulu, and ESPN+ bundle will increase by $2.
The full list of new prices can be found below.
