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Disney price hikes help fuel earnings growth as streaming business posts profit

Disney price hikes help fuel earnings growth as streaming business posts profit


Published on 2025-02-05 11:22:26 - MSN
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  • Disney (DIS) reported first quarter earnings on Wednesday that beat expectations as the media and entertainment giant reported a profit in its streaming segment while its parks business faced setbacks in the midst of two back-to-back hurricanes and greater cruise ship investments.

Disney reported a significant earnings growth in its latest financial quarter, largely driven by price increases across its various services. The company's streaming business, which includes Disney+, Hulu, and ESPN+, turned a profit for the first time, reporting a $47 million operating income, a stark contrast to the $587 million loss in the same quarter the previous year. This profitability was supported by a 13% increase in average revenue per user, attributed to higher subscription fees and a reduction in marketing expenses. Additionally, Disney's theme parks and experiences also contributed to the earnings, with a 7% revenue increase, although this was tempered by higher costs. Overall, Disney's strategic pricing adjustments and cost management have begun to pay off, helping the company navigate the challenging transition towards a more profitable streaming model.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/disney-price-hikes-help-fuel-earnings-growth-as-streaming-business-posts-profit/ar-AA1ysHB9 ]
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