Disney Q3 Revenue Rises 4%; Streaming Subscriber Growth Stagnant

The Walt Disney Company has announced a Q3 2024 fiscal year revenue of $23.2 billion (€21.2bn), marking a 4% increase from the previous year's same quarter.

Disney+ saw a nearly 1% rise in subscribers, reaching 118.3 million. In the US and Canada, the service added a net 800,000 new subscribers, totaling 54.8 million. International Disney+ Core subscribers (excluding Disney+ Hotstar) dropped by about 100,000 to 63.5 million. Hulu's total subscribers grew by 2% to 51.1 million.

Disney+ domestic average revenue per user (ARPU) dropped 3% to $7.74 due to subscriber mix changes, while international ARPU (excluding Hotstar) rose 2% to $6.78 due to price hikes, slightly offset by currency exchange impacts. Hotstar's ARPU increased by 50% to $1.05, driven by higher ad revenue.

For the first time, Disney's combined streaming business (Disney+, Hulu, ESPN+) turned a profit, with an operating profit of $47 million compared to a loss of $512 million in the same quarter last year. Without ESPN+, the DTC streaming unit reported a $19 million loss.

Disney’s linear TV segment experienced a 7% decline in revenue and a 6% drop in operating income. Pixar’s Inside Out 2 was a significant box office success for Disney in the quarter, becoming the highest-grossing animated movie of all time with over $1.5 billion in revenue since its June release. The original Inside Out movie (released in 2015) also drew more than 1.3 million Disney+ sign-ups and generated over 100 million views globally.

Disney’s theme parks business was affected by reduced consumer demand and inflation, with operating profit down 6%. Revenue for the overall experiences unit, which includes domestic and international parks, experiences, and consumer products, increased by 2% to $8.38 billion.