ANAHEIM, Calif. – Disney’s combined streaming business of Disney+, Hulu, and ESPN+ showed promising signs of profitability in the second quarter, with revenues reaching $6.19 billion and a minimal operating loss of $18 million, a sharp 97% decrease from the same period last year.

CEO Bob Iger highlighted the exceptional performance of Disney’s entertainment streaming business, noting an operating income of $47 million in the quarter, marking a significant turnaround from past losses just 18 months ago.

Both Iger and CFO Hugh Johnston expressed optimism about the future profitability of Disney’s streaming business, anticipating further improvements in profitability for the following year. With a current subscriber base of 228.6 million, Disney’s streaming services are poised to reach a significant milestone in 2024.

In an effort to enhance its streaming services, Disney plans to implement measures to prevent subscribers from sharing accounts with non-household members, with a global password crackdown scheduled to begin in September. Additionally, Disney+ will introduce an in-platform ESPN tile in the U.S. by the end of the year, building on the successful incorporation of Hulu on Disney+.

Looking ahead, Disney aims to achieve double-digit profit margins in its streaming business, although specific timelines for this goal were not disclosed during the recent earnings call. Despite falling slightly below Wall Street revenue estimates in the second quarter, Disney reported adjusted earnings per share exceeding expectations.

Overall, Disney’s foray into the streaming market continues to show promise, with executives confident in the growth prospects of their streaming services moving forward.