ESPN+ performed particularly well, giving a boost to Disney’s streaming units.
Disney on Wednesday reported a profitable third quarter after recent financial struggles, which included its streaming business turning a profit for the first time.
According to the Associated Press (AP), Disney’s direct-to-consumer division, which includes Disney+ and Hulu, reported a reduced operating loss of $19 million, significantly down from the $505 million loss the previous year. Revenue for this segment rose 15 percent to $5.81 billion.
This financial report followed Disney’s announcement of price increases for Disney+, Hulu and ESPN+ effective October 17. Prices for Disney+ and Hulu with ads will each increase by $2 to $9.99 per month, while the ad-free versions will see similar hikes.
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The AP cited Disney as reporting its combined streaming businesses achieved profitability due to a robust performance from ESPN+ and better-than-expected results from the direct-to-consumer unit. Disney CEO Bob Iger and CFO Hugh Johnston noted in prepared remarks that ESPN had its most watched third quarter in primetime in a decade among adults age 18-49, driven by major sports events.
