Disney Streaming Profits Soar as Company Announces Major Subscriber Milestones and Dividend Hike

The Walt Disney Company reported its fiscal fourth-quarter earnings. Revenue held steady at $22.5 billion. This news came early on Thursday morning.

Disney’s streaming services, however, were the clear star performers. The direct-to-consumer business turned a significant profit. According to Reuters, this marks a pivotal shift for the media giant.

Disney+ and Hulu Drive Profitable Quarter Despite Industry Headwinds

Disney+ added 3.8 million core subscribers last quarter. The total now stands at 132 million. Combined Disney+ and Hulu subscribers hit 196 million.

Direct-to-consumer revenue jumped 8% to $6.2 billion. More importantly, operating income for the segment surged 39% to $352 million. This shows streaming is now a reliable profit center.

The company’s traditional TV business faced continued pressure. Linear network revenue fell 16%. The ongoing shift to streaming is accelerating this decline.

Future Focus: AI, ESPN Streaming, and Strong Financial Targets

CEO Bob Iger outlined an ambitious digital future. He teased “game-like” features and AI tools for Disney+. These tools could let users create and share short-form content.

Iger also highlighted the new standalone ESPN streaming service. He called it a positive step for the sports network’s future. The company did not provide early subscriber numbers for it.

Disney issued confident financial guidance for the coming years. It expects double-digit profit growth in entertainment by 2026. The company also plans to double its stock buybacks to $7 billion.

Disney’s latest earnings confirm its successful pivot to streaming profitability. The company is leveraging its powerful brands to secure a dominant digital future. This strategic focus is already delivering strong financial results for shareholders.

Thought you’d like to know

Q1: How many subscribers does Disney+ have now?

Disney+ reported 132 million core subscribers at the end of the quarter. This represents an addition of 3.8 million subscribers in just three months.

Q2: Is Disney’s streaming business profitable?

Yes. The direct-to-consumer segment reported an operating income of $352 million. This is a 39% increase from the previous year.

Q3: What did Disney say about AI?

CEO Bob Iger said AI will enable more engaged experiences on Disney+. He mentioned user-generated content creation as a key possibility for the platform’s future.

Q4: How is Disney’s linear TV business performing?

It is declining. Revenue from linear networks fell 16% this quarter. Operating income for that segment dropped by 21%.

Q5: What is Disney’s financial outlook?

The company forecasts double-digit operating income growth for its entertainment division by 2026. It also announced a 50% increase in its annual dividend to shareholders.