Disney’s streaming service turned its first profit since launching in 2019 on the back of popular shows from its Hulu network such as The Bear.
The entertainment giant said its direct-to-consumer streaming service made $47m profit (£37.44m) in the second quarter to 30 March.
This comes after Disney’s streaming service has lost around $11bn since launching in 2019, including $587m (£467.58m) a year earlier, in the same period.
Disney has managed to turn heavy losses into a profit for the first time by cost-cutting and raising its prices. According to Martin Lewis’s MoneySavingExpert site, prices went up by £36 a year in the UK, joining other subscription services like Netflix.
Disney also launched a password-sharing crackdown, forcing Brits to set up new accounts instead of using family or friends’ access.
Overall, Disney’s earnings report said revenues for the quarter had gone up to $22.1bn from $21.8bn, on the same point last year.
Its total direct-to-consumer streaming, which includes sports channels such as ESPN, narrowed its operating loss to $18m.
“Our strong performance in Q2, with adjusted EPS (earnings per share) up 30 per cent compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, the chief executive officer of the Walt Disney Company.
Iger continued: “Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.
“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results.”
“We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments,” the CEO added.
This comes after Disney went through a tumultuous boardroom row, in which Iger saw off a revolt from off-activist investor Nelson Peltz.
In February, Disney beat expectations as it forayed into the lucrative gaming market with a $1.5bn (£1.2bn) investment in Fortnite studio, Epic Games.