Disney’s streaming business has turned a profit for the first time, according to its quarterly report.
Disney’s direct-to-consumer streaming business, which includes Disney+, Hulu and ESPN+, reported revenue of $6.4bn and income of $47m according to its third-quarter results. A year ago it had losses of over half a billion.
Disney had not expected its streaming business to move into profit until later in the year. It follows the company’s decision to follow Netflix and crack down on password sharing.
Disney+ core subscribers rose to 118.3m, while Hulu subscribers rose 2% to 46.7m.
For the third quarter, Disney reported overall revenue of $23.2bn and income of $3.1bn, beating Wall Street estimates.
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That was led by the entertainment division, which saw its profits soar thanks to improvements in direct-to-consumer and the success in cinemas of Inside Out 2, which is now the highest-grossing animated film of all time.
Disney said that screening the original Inside Out film on Disney+ drove 1.3m new subscriptions and resulted in 100m views of the film since the trailer for the sequel launched in March.
However, the company’s experiences division reported a softer third quarter. The division, which includes Disney’s theme parks and cruise line, had $8.4bn in revenue, up 2% from a year ago, but operating income of $2.2bn, down 3%.
“Our performance in Q3 demonstrates the progress we’ve made against our four strategic priorities across our creative studios, streaming, sports, and Experiences businesses,” said Disney CEO Bob Iger in a statement.
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