Disney Earnings Jump 44%, Streaming Profitable Thanks To Price Hikes

Disney reported a 44% increase in earnings for Q1 2025, reaching $1.76 per share, surpassing analyst expectations of $1.45 per share. Revenue rose 5% to $24.69 billion, with its entertainment division growing 9% and theme parks seeing 3% growth, despite some hurricane-related disruptions. The company’s streaming segment turned profitable, generating $293 million in operating income compared to a $138 million loss last year, driven by higher subscription prices. However, Disney+ subscribers dipped 1%, while Hulu subscribers rose 3%, and ESPN+ lost 3% of its base.

Disney announced a major streaming partnership with FuboTV, merging Hulu + Live TV into Fubo, where Disney will hold a 70% stake. This move follows the decision to scrap Venu Sports, a planned joint venture with Fox and Warner Bros. Discovery. As part of the deal, Disney and its partners will pay $220 million to Fubo, with Disney committing to a $145 million term loan in 2026. The agreement includes a $130 million breakup fee if regulatory approvals are not secured. The combined Fubo-Hulu Live TV platform will continue separately, while Disney’s streaming bundle for Disney+, Hulu, and ESPN+ remains available.

Separately, Disney joined Netflix, Amazon, and other major studios in backing the Foreign Anti-Digital Piracy Act, a bill aimed at cracking down on piracy sites that cost the U.S. economy billions annually. The bill would allow copyright owners to seek court orders blocking access to foreign piracy platforms. A recent study estimated that piracy cost the U.S. economy $29.2 billion per year, with one unnamed piracy site surpassing Disney+ viewership in October 2024. Live sports piracy alone drains about $28 billion annually from the global sports industry.

Source: https://www.investors.com/news/disney-earnings-q1-2025-disney-dis-stock-dow-jones/?src=A00220