Catching up with Netflix

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Disney and other Hollywood studios have been on an expensive race to catch up with streaming market leader Netflix for years.

(Bild: AFP)

Disney has turned a profit in its streaming business for the first time after years of losses. In the third quarter, the division posted an operating profit of 47 million dollars (43 million euros) with the Disney+ streaming service. A year earlier, the division had lost 512 million dollars.

Disney and other Hollywood studios have been on an expensive race to catch up with streaming market leader Netflix for years. One reason for this is the decline in the cable television business in the USA, which used to be a reliable source of income.

Iger on the cost brake
Disney CEO Bob Iger recently put the brakes on costs at Disney+. This includes producing slightly less expensive series and films from the "Star Wars" and Marvel worlds. Disney+ ended the quarter with 118.3 million customer households - one percent more than three months previously.

At 1.2 billion dollars, operating profit in the entertainment business as a whole was three times higher than in the same quarter of the previous year. In contrast, the operating result in Disney's theme park and cruise ship division fell by 3 percent to 2.22 billion dollars. Disney explained that consumers had become less willing to spend towards the end of the quarter.

At Group level, Disney exceeded market expectations with its quarterly results. Sales increased by 4 percent to just under 23.16 billion dollars. Analysts had expected an average of around 23 billion dollars. The bottom line was a profit of 2.6 billion dollars, following a loss of 460 million dollars in the same quarter last year.