Disney Has “Never Been More Confident” About 2024 Streaming Profitability Despite Reported LOSS in Subscribers

We’ve recently learned even more about Disney’s BIG plans for its streaming services.

©Disney

First, the company has teamed up with Warner Bros. Discovery to bring ESPN, Fox, and Warner Bros. Discovery sports coverage into one streaming service. And although Disney+ seems to have lost some subscribers, its average monthly revenue per paid subscriber increased by 9% domestically. Overall, the company seems to be very confident about one of its major goals (and CEO Bob Iger’s #1 priority): to have streaming become profitable in 2024 (yep, this year).

During Disney’s recent Q1 2024 earnings call, the company’s CFO, Hugh Johnston, said, “We still expect to reach profitability at our combined streaming businesses in Q4 of fiscal 2024 and have never been more confident about our path to creating a strong and sustainable streaming business, with growing subscribers over the long term and, ultimately, double-digit operating margins, a business which we fully expect to be a key earnings growth driver for the company.”

©Disney | Walt Disney Company Headquarters

So, if Disney+ just lost subscribers, how will profitability become obtainable for the company? Well, there are a few ways streaming is going to bring in more money for Disney. One, technological advances will help bring in more revenue. Disney has already created some new tech that will integrate shopping and gaming experiences into its streaming services that could double as interactive ads.

©Disney

Another way that Disney hopes to bring in more revenue is by making Hulu content available on Disney+ for subscribers who pay for both. That feature is already available as a beta version, with an official launch of the feature happening in March 2024. Disney also hopes that more customers will choose to bundle streaming services and that this new feature will encourage that.

©Hulu

Of course, Disney’s big partnership with Warner Bros. Discovery for streaming sports content will also bring in the $$$…if the company is allowed to continue with plans for the service. The service will be available to ESPN+, Hulu, and Max subscribers, with each company owning one-third of the product. 

©ESPN

In November 2024, Disney partnered with Globoplay, a streaming service in Brazil, to provide Disney+ through a combined subscription package to those who have Globoplay in Latin America. Disney+ continues to spread its streaming service across the globe.

‘Chip ‘n Dale: Rescue Rangers’ Disney+ Ad in Hollywood Studios

We also have to mention Disney and Hulu’s crackdown on shared passwords. Shared accounts outside of the same household will no longer be allowed on the services, but Disney mentioned that it is planning to offer a feature to add additional accounts to a subscription for an additional fee. This will also bring in additional streaming revenue. That, plus recent price hikes for streaming services, puts Disney well on track to reach its profitability goal this year.

We’ll be keeping an eye on any updates about Disney’s streaming services, so stay tuned to DFB for more.

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