Wall Street is experiencing a recovery phase, buoyed by a promising round of corporate earnings reports. Notably, e-commerce platform Shopify reported a remarkable 21% increase in second-quarter revenue, surpassing expectations. Additionally, Lyft exceeded sales forecasts and achieved a significant milestone by posting a net profit for the first time in the company’s history.
Disney+ Achieves Profitability
In another positive development, Walt Disney announced that its streaming service, Disney+, has turned profitable for the first time since its launch in 2019. The Disney streaming bundle, which includes Disney+, Hulu, and ESPN+, recorded a quarterly operating profit of $47 million.
In a statement from CEO Bob Iger’s executive team, they highlighted the importance of exceptional content and a broad brand portfolio: “The combination of exceptional content and a broad brand portfolio is the key to our success as we build streaming into a profitable growth business for the company over the long term. We were pleased to see our combined streaming business profitable in the third quarter ahead of our guidance, and we remain on track for that profitability to improve in Q4.”
Disney attributed the success of its streaming business to positive spillover from its film division, reporting a surge in new subscribers eager to catch up on content ahead of sequels or new installments in popular franchises.
Price Increases for Streaming Services
Despite the good news, subscribers can expect a price hike for Disney’s streaming services. Starting in October, Disney+ with ads will increase from $7.99 to $9.99, while the ad-free version will rise from $13.99 to $15.99. Hulu’s pricing will also adjust, with the ad-supported plan increasing to $9.99 and the ad-free plan to $18.99. Meanwhile, ESPN+ will see a $1 increase, bringing the price to $11.99.
In a strategic move to better compete with Netflix, Disney is introducing a new bundle that includes Max from Warner Bros. Discovery, priced at $30 a month. This move is part of Disney’s efforts to enhance its streaming offerings and attract more subscribers in a competitive market.
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