How Disney+ Finally Turned a Profit
By Movieguide® Contributor
Disney is celebrating a record-making quarter, as its streaming service just turned a profit for the first time ever — in part due to the success of INSIDE OUT 2.
“This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance,” Disney CEO Bob Iger said.
According to The Wrap, Disney recorded “$47 million in its third quarter of 2024, compared to a loss of $512 million in the prior-year period,” adding that total direct-to-consumer revenue increased by 15% to $6.38 billion.
The company’s net income stands at $3.1 billion — compared to a loss of $100 million in the same period last year.
Disney expects to continue this streak of high earnings. A statement from the company reads, “We remain on track for the profitability of our combined businesses to improve in Q4, with both Entertainment DTC and ESPN+ expected to be profitable in the quarter. We continue to feel optimistic about our trajectory, with multiple building blocks for improving margins over the coming years.”
Part of this bump in streaming profitability is also due to Disney’s partnerships with streaming services like Hulu and ESPN+, which The Guardian reported had a “strong three months” this past quarter.
Another major component in Disney’s excellent quarter is the success of INSIDE OUT 2, which made major box office dollars and drove up streaming numbers. Disney reported 1.3 million Disney+ sign-ups during this quarter and said INSIDE OUT 2 generated over 100 million views across the world.
It’s not surprising INSIDE OUT 2 increased Disney’s profits. The movie received rave reviews from critics and audiences alike. Movieguide® previously reported on its record-breaking run:
INSIDE OUT 2 just hit some major box office milestones, scoring a Top 10 spot on the all-time animated movies list as it hit the $800 million mark.
The movie took home $799.7 million at the global box office, making it the No. 10 animated movie of all time, passing MINIONS: THE RISE OF GRU, FINDING NEMO and SPIDER-MAN: ACROSS THE SPIDER-VERSE.
“Worldwide, it’s a matter of when, not if, INSIDE OUT 2 passes the $1B mark,” Deadline reported. “The Kelsey Mann-directed juggernaut already is well on its way to surpassing the first INSIDE OUT’s $859M global.”
INSIDE OUT 2 has already set some major records — the movie took home $100 million in its second weekend, setting a new record for an animated movie. It’s also already become 2024’s highest-grossing movie to date.
“Now, INSIDE OUT 2, which dipped a mere 35% from its $154 million domestic debut, is poised to challenge THE INCREDIBLES 2 ($1.2 billion) for the all-time top grossing Pixar release,” NPR reported.
