After a long time, Disney returned to profitability in the third quarter of the financial year, thanks to its streaming business, which made money for the first time ever. The profitable quarter can also be attributed to the strong theatrical performance of their new movie, Inside Out 2. The operating income of Disney’s entertainment segment, which includes its studio and a part of its television wing, almost tripled to $1.2 billion.
The Walt Disney Co. said on Wednesday that its direct-to-consumer streaming business, which includes Disney+ and Hulu, reported a quarterly operating income loss of $19 million. This loss is significantly less as compared to last year’s $505 million loss. Moreover, the revenue of the streaming platform rose by 15% to $5.81 billion.
These results we re announced after the decision to boost the plan prices of Disney+ and Hulu. From 17 October onwards, the price for the Disney+ plan with ads will be $9.99/month, a $2 rise, while the ad-free version will cost $15.99/month, also a $2 increase. Hulu, on the other hand, will increase its rate by $1 to $18.99/month. ESPN+, which is only available with ads, will now cost $11.99, a $1 increase.
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However, revenue declined in part of its Experience division, which includes six global themed parks, its cruise line, merchandise, and video game licensing. The company said that it is witnessing some moderation in demand, and this moderation could linger for the next few quarters. The company anticipates mid-single-digit losses in the fourth quarter, which is comparatively low as compared to last year. This is mainly because of the moderation in demand and fewer people in Disneyland Paris due to the impact of the Olympics on normal consumers and expenditure.
However, the company anticipates that its streaming business and Experience division will start making a profit after this financial year ends. However, shareholders are sceptical.
