Disney reports significant growth in streaming subscribers amid strong earnings

In the United States, the Walt Disney Company reported strong financial results for its second quarter ending March 30, 2025. The company achieved profits of $3.28 billion, or $1.81 per share, compared to a loss of $20 million, or a penny per share, for the same period in the prior year. This dramatic turnaround reflects a robust performance by Disney’s domestic theme parks, as well as a substantial increase in its streaming subscriber base. Overall revenue rose 7% to $23.62 billion, surpassing Wall Street projections while Disney’s direct-to-consumer segment, which includes Disney+ and Hulu, posted notable improvements with an operating income of $336 million, up from $47 million a year earlier. Disney+ subscriptions showed an unexpected growth as well. The service saw its domestic paid subscribers increase by 2%, growing from 124.6 million to 126 million, while international subscriptions rose by 1%. Significantly, Disney had earlier anticipated a decline in Disney+ subscribers for this quarter due to previous volatility in subscriber numbers driven by the loss of significant content rights in regions like India. However, box office successes such as the film Moana 2, which surpassed $1 billion in global revenue, were credited for contributing to this increase in subscriptions, which also translated into heightened attendance at the company’s theme parks. Furthermore, Disney declared that it is doubling its investment in its theme park operations. Amidst the positive financial results, the company announced plans for a new theme park in Abu Dhabi. This location is strategically chosen and will be built on Yas Island, operated in collaboration with Miral, which is known for its range of existing attractions in the area such as Ferrari World Abu Dhabi. Although international parks reported a decline of 23% in operating income, the company appears committed to a long-term growth strategy that focuses on its parks just as much as its streaming services. This strategy aligns with broader trends in the entertainment industry, fostering resilience amid fluctuating market conditions, ensuring that Disney continues to thrive well into the future. As a result, investors responded positively, leading to a significant rise in Disney's stock prices following the announcements. The company’s future guidance seems bright as it continues to navigate through various challenges, adjusting its business model in response to market dynamics and consumer behavior. The growth in both subscribers and attendance reflects a potential rebound for the brand that has experienced ups and downs in recent years, affirming the company's position as a key player in both the streaming and theme park industries.