Disney CEO Says Disney+ Should 'Achieve Profitability' in 2024 As Its User Base Reaches 164 Million Disney+'s fourth-quarter results reported a significant increase in subscribers as compared to October 2021.
By Madeline Garfinkle Edited by Jessica Thomas
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Disney+ and its adjacent streaming services gained a significant number of new subscribers in the fourth quarter of 2022. The company reported on Tuesday that Disney+ gained 12.1 million subscribers this quarter, bringing its total user base to 164.2 million.
In October 2021, Disney+ had 118.1 million paid subscribers, meaning the fourth quarter marked a 39% increase year-over-year. "2022 was a strong year for Disney, with some of our best storytelling yet," CEO Bob Chapek said in the earnings report.
The company's other streaming services, ESPN+ and Hulu, also reported increases in paid subscribers year-over-year, with ESPN+ growing by 42% and Hulu by 8%.
Related: Disney+ Hits a Major Milestone
However, Disney's fourth quarter wasn't all gains. It reported a $1.47 billion loss in Q4 operating costs for its direct-to-consumer segment, significantly steeper than the $630 million in losses reported for the same period in 2021.
"We expect our [direct-to-consumer] operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate," Chapek said in the report.
Chapek went on to say that by "realigning" costs and introducing the ad-supported tier of Disney+ launching on December 8, the company will "be on the path to achieve a profitable streaming business" and "generate shareholder value long into the future."
