Reflecting positive streaming trends at other media conglomerates, Disney leadership said in a Q4 and full year earnings call that the direct to consumer business saw profitability improve at the end of fiscal 2024 as subscribers and the company’s overall financial metrics exceeded expectations.
The company’s streaming business showed improved profitability of $321m compared to a $387m loss a year ago, and revenues climbed 15% to $5.8bn.
Disney+ Core subscribers, excluding Disney+ Hotstar in India, increased by 4% and 4.4million over last quarter to reach 122.7m, of which 66.7m come from international markets and 56m from North America. Disney+ Core subscribers including 52m Hulu subscribers after a 2% rise there amounts to 174.7m.
Average monthly revenue per paid North American subscriber to Disney+ fell 1% to $7.70 while the corresponding number for international members excluding Disney+ Hotstar climbed 3% to $6.95.
In an unusual move, company leadership offered guidance for the next three years and forecast that the streaming segment will generate approximately $1bn in profit in 2025.
Overall revenue at The Walt Disney Company climbed 6% to $22.6bn and earnings per share reached $1.14 – both ahead of industry expectations – while net income of $460m compared well to $264m a year ago. Free cash flow for the quarter climbed 18% to just over $4bn.
Entertainment division revenues increased by 14% to $10.8bn in the quarter, while linear networks dropped 6% to $2.5bn. Powered by box office hits Inside Out 2 and Deadpool & Wolverine, content sales and licensing operating income reached $316m. The two major theatrical releases still to come from the studio this year are Moana 2 and Mufasa: The Lion King.
Coming in 2025 are the likes of Captain America: Brave new World, Lilo & Stitch, The Fantastic Four: First Steps, Zootopia 2, and Avatar: Fire And Ash, with The Mandalorian And Grogu and the live-action Moana among the offerings in 2026.
Disney stock was up more than 9% in pre-market trading and by early afternoon was up around 7%.
Separately, Disney’s Star India and Reliance Industries’ JioCinema have completed an $8.5bn deal to create a joint venture entertainment company in India. The JV will operate more than 100 TV channels and produce more than 30,000 hours of television content annually. The JioCinema and Hotstar digital platforms have an aggregate subscription base of more than 50million, and the JV holds a portfolio of sports rights including cricket and football. It will be led by co-CEOs Kevin Vaz, Kiran Mani, and Sanjog Gupta.
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