Disney has reported profiting from its streaming services for the first time – but is struggling with theme park visitor numbers.
The company’s streaming services – which include Disney+, Hulu and ESPN – brought in $47 million in the third quarter, becoming profitable earlier in the year than leaders predicted, CNBC reports. The film “Inside Out 2,” released this summer has helped drive up revenue as more people signed up for Disney+ subscriptions.
“We’ve made great progress,” Chief Financial Officer Hugh Johnston said on Wednesday, according to the Wall Street Journal. “We were losing $1 billion a quarter not that long ago.”
However, the company is now seeing a “slowdown” in theme park attendance in the US.
“We saw a slight moderation in demand, I certainly wouldn’t call it a significant change,” Johnston said. “I would just call this a bit of a slowdown that’s being more than offset by the entertainment business.”
US parks saw a 6 percent dip in income this quarter, while international parks had a 2 per cent rise, according to Disney’s earnings report.
The jump in streaming profits comes after Disney hiked subscription prices several times over the past few years, the Journal reports.
The latest round of price hikes, effective in October, puts both the Disney+ and Hulu subscriptions with advertisements at $9.99 a month – a $2 increase, according to the Journal. Disney’s popular “trio” bundle – Disney+, Hulu and ESPN+ – will also jump $2 to $16.99 a month with ads.
Another streaming bundle, which includes Hulu, Disney+ and Max, was announced earlier this year as part of the ongoing “streaming wars” between Apple, Amazon, Peacock, Paramount, Netflix and a host of other media giants.
“Netflix is the gold standard in streaming,” Disney CEO Bob Iger said in May. “They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great.”