Walt Disney Streaming Business Performance in 1Q25: A Detailed Analysis
The Walt Disney Company’s stock dropped by 1% on Tuesday, but it has still gained 6% over the past three months. In the first quarter of 2025, Disney saw a 5% increase in revenue to $24.7 billion and a 44% increase in adjusted earnings per share to $1.76 year-over-year.
One of Disney’s key growth strategies is its streaming business, which saw a 9% increase in revenues to $6 billion in Q1 2025. The Direct-to-Consumer segment also reported operating income of $293 million compared to a loss of $138 million in the previous year. Subscription revenue growth was a key driver, with Disney+ seeing a slight decline in subscribers, while Hulu subscribers grew by 3% to 53.6 million.
Disney+ had a total of 124.6 million paid subscribers at the end of Q1 2025, with domestic subscribers growing by 1% and international subscribers decreasing by 2%. The company’s plans for the future include enhancing engagement through new content and features, like the addition of personalization features and the launch of Streams for tailored playlists.
Looking ahead to the second quarter of 2025, Disney expects a slight decline in Disney+ subscribers sequentially due to price increases and expired deals. However, for the fiscal year 2025, the company anticipates an increase in operating income for the Direct-to-Consumer business of approximately $875 million compared to the previous year.
