Company Overview Disney’s streaming portfolio—Disney+, Hulu, and ESPN+—reached a pivotal milestone, posting its first full-year streaming profit of $574 million on $23.3 billion in revenue in 2024, marking a dramatic turnaround from a $2.5 billion loss in 2023. This profitability inflection point comes as Disney’s direct-to-consumer segment brought in $5.8 billion in revenue in the last quarter, a 15% increase year-over-year, while operating profits soared to $321 million compared to a $387 million loss during the same period last year.
What makes Disney particularly compelling right now is its diversified approach. Entertainment giants have started turning their streaming operations profitable, with the exception of Disney, which benefits from a large and growing Experiences segment that accounts for about 60% of operating income. Disney’s scaled investments at its Experiences segment include plans to spend $60 billion over the next decade, offering durability that pure-play streaming companies lack. With a forward price-to-sales ratio just one-fifth of Netflix’s, Disney offers substantially better upside potential.
Key Technical and Fundamental Drivers
Streaming Profitability Achieved → $574M FY2024
Disney’s first full-year streaming profit of $574 million on $23.3 billion in revenue represents a dramatic turnaround from a $2.5 billion loss in 2023, demonstrating the business model finally works at scale.
Experiences Growth Engine → $60B Investment
Disney plans to invest $60 billion in its Experiences segment over the next decade, with the segment accounting for about 60% of operating income, providing a massive growth runway beyond streaming.
Subscriber Momentum → 4.4M Additions
Disney+ added 4.4 million core subscribers last quarter, excluding the lower-priced Disney+ Hotstar service in India, showing continued growth despite an already large base.
Valuation Discount → 1/5th of Netflix
Disney’s forward price-to-sales ratio is just one-fifth of Netflix’s, offering dramatically more attractive entry point despite multiple revenue streams and untapped potential.
Pricing Power Demonstrated → Successful Hikes
The ad-free Disney+ plan saw a $2 price hike to $16 in October following a similar increase in 2023, indicating strong pricing power and an engaged user base willing to absorb higher costs.
Market Takeaway Disney represents one of the most compelling value propositions in entertainment today. While Netflix trades at stretched valuations reflecting its dominant position, Disney offers investors the rare combination of streaming profitability, theme park dominance, and pricing power at a fraction of the valuation. The streaming business finally turning profitable removes a major overhang that plagued the stock for years, while the Experiences segment’s $60 billion investment pipeline ensures Disney has growth drivers completely independent of the competitive streaming wars.
The company’s diversified model provides downside protection that pure-play streamers lack—if streaming growth slows, theme parks and consumer products pick up the slack. If streaming accelerates, Disney captures upside while still collecting theme park revenue. This optionality, combined with a valuation that’s one-fifth of Netflix’s despite comparable streaming subscriber counts, creates an asymmetric risk-reward profile. With successful price increases demonstrating pricing power, 4.4 million subscriber additions showing continued momentum, and the streaming business now contributing profits rather than losses, Disney appears positioned for a meaningful re-rating as the market recognizes the transformation from money-losing streaming challenger to diversified entertainment powerhouse generating cash across multiple high-margin businesses.