Disney is getting closer to achieving profitability in streaming, with the entertainment giant narrowing its direct-to-consumer operating losses 97% to $18 million during its second quarter of 2024. But shares of the entertainment giant fell more than 9% on Tuesday after executives warned that they don’t expect to repeat the feat in the third quarter.
In a milestone for the company, when excluding ESPN+, Disney’s entertainment DTC business, which includes Disney+ and Hulu, turned an operating profit of $47 million, compared to a loss of $587 million in the prior-year quarter.
The company warned, however, that it does not expect to turn a profit with entertainment streaming in the third quarter, nor to grow its core Disney+ subscribers in Q3.