It took Disney five years since the launch of Disney+ to finally turn a profit from its streaming business. Last quarter, Disney reported that its streaming services, which also include Hulu and ESPN+, turned a profit for the first time, and earlier than anticipated. The company had previously expected its streaming services to first turn a profit in the fourth quarter.
Disney continues to face challenges with its traditional television assets, including the ABC broadcast network and cable channels like the Disney Channel, National Geographic, and FX. In its fourth fiscal quarter, the company reported a 38% drop in operating income from its linear networks, falling to $498 million from $805 million in the same period of 2023.