After years of criticism from Wall Street that streaming was an unprofitable business model, legacy media is finally starting to turn the corner on profitability in its online ventures.
The studios have inched towards positive returns largely through cost-cutting, bundling, ad tiers and price increases. But they have yet to prove they can make streaming consistently profitable over multiple quarters. And the major legacy studios still have a long way to go before catching up to streaming leader Netflix.
The latest round of earnings reports from the major studios offered a mixed picture of the sluggish road to streaming returns.
In its third quarter of 2024, Disney posted its first combined profit across its three streaming services — $47 million on revenues of $6.38
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