The streaming revolution is “starting to yield real profits for entertainment companies,” according to Simonetti & Rattner of the WALL STREET JOURNAL. Disney’s entertainment streaming business, home to Hulu and Disney+, has “swung to a profit in recent quarters,” and Warner Bros. Discovery has “seen significant gains.” Other competitors are “still working toward consistent direct-to-consumer business profitability.” Disney is betting that by stitching its marquee services together, it will “attract customers who want a comprehensive streaming bundle.” More services are coming soon. Fox is launching its own direct-to-consumer service with sports, news and entertainment content later this year. And Disney’s ESPN is making all of its networks’ content available in a “much-anticipated new direct-to-consumer service,” this fall. According to Antenna, streamers on the whole “are adding more subscribers than they are losing.” But consumers “cycle in and out of streaming services frequently,” timing their subscriptions to “popular show releases or sporting events.” In the December 2024 quarter -- a “period jam-packed” with streamed sporting events -- streaming services saw a “significant jump” in net adds to 13.9 million. Live sports “remains among the most valuable programming on TV,” and it has a “role in accelerating the transition to streaming.” Still, sports rights are “increasingly split up across platforms, and can’t-miss shows are everywhere.” Viewers have “little choice but to subscribe to several services to stay in the loop” (WALL STREET JOURNAL, 5/21).
Companies seeing notable gains, profits from streaming
