Disney+ sheds 700k subscribers, but still makes a profit
Disney+ sheds 700k subscribers, but still makes a profit
Hulu added 1.6 million new subscribers, helping Disney gain almost 1 million net new streaming customers in the quarter.
Disney continues to live in the future. That isn’t a statement about the quality of its theme part rides; rather, it reflects that Disney’s fiscal year is one quarter ahead of everyone else’s. That means that when the company reports earnings for its first fiscal quarter of 2025, the results are still for the quarter ending Dec. 28, 2024. Those earnings results were reported on Wednesday, Feb. 5, and it was another strong quarter for Disney’s streaming segment.
Key Details:
- Disney+ lost 700,000 subscribers during the quarter, but Hulu gained 1.6 million.
- Streaming turned a $293 million profit for Disney in its fiscal first quarter.
- Both the positive financial results and the customer declines are likely thanks to the last round of streaming price increases from Disney.
Disney+ was the big loser from the quarter, shedding 700,000 subscribers to land at a total of 124.6 million. That includes 56.8 million domestic customers, and 67.8 million international viewers. Hulu ended the quarter with 53.6 million total viewers; 49 million on-demand subscribers, and another 4.6 million on the Hulu + Live TV service. Hulu’s on-demand streamer gained a total of 1.6 million customers during the quarter.
Average revenue per user (ARPU) in the United States and Canada ticked up from $7.70 to $7.99, and internationally it jumped from $6.78 to $7.19. Hulu’s ARPU was only $0.02 lower at $12.52 in Q1 2025, and for Hulu + Live TV it rose from $95.82 to $99.22. Altogether, Disney’s streaming segment turned in a profit of $293 million continuing its momentum from 2024.
ESPN+ ended the calendar year with 24.9 million customers, and ARPU jumped from $5.94 to $6.36.
Both the subscriber declines and the revenue increases for Disney’s streaming segment were due in large part to the price increases Disney+ pushed through in October 2024. Almost every individual Disney streaming plan and Disney Bundle option jumped in price by $1 to $2 per month.
Disney+ also launched an ESPN tile in December. It allows all Disney+ subscribers to stream a selection of sports content at no extra cost, but those who are also subscribed to ESPN+ can watch a much bigger inventory of sporting events.
The House of Mouse expects to continue growing its direct-to-consumer (DTC) revenue over the course of the year, and is still planning to launch a new ESPN streaming service working under the name Flagship before the 2025 football seasons start.
“Our results this quarter demonstrate Disney’s creative and financial strength as we advanced the strategic initiatives set in motion over the past two years,” said Bob Iger, CEO of Disney. “In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024; we further improved the profitability of our Entertainment DTC streaming businesses; we took an important step to advance ESPN’s digital strategy by adding an ESPN tile on Disney+; and our Experiences segment demonstrated its enduring appeal as we continue investing strategically across the globe. Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth.”
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”