Enjoying a summer of theatrical domination and the fact that its DTC business is finally in the black, Disney is basking in the glow of a strong quarterly performance from its entertainment segment.

The media giant released a Q3 financial report today, announcing that its combined streaming businesses (Disney+, Hulu, ESPN+) reached profitability for the first time. The unit took in US$47 million in operating income, up from a US$512-million loss in the same period last year. Disney+ now has 118.3 million core subscribers (excluding Hotstar), which is more or less flat compared to 117.6 million in Q3 2023.

Today’s earnings report followed on the heels of yesterday’s news about price hikes coming in October. Disney+ will increase its monthly fees by US$2 to US$9.99 (ad-based tier) and US$15.99 (ad-free tier). Another change on the way is the introduction of “playlists”. These always-live channels (including one dedicated to preschool content) are slated to launch on September 4.   

Disney’s overall revenue hit US$23.2 billion this quarter, with operating income up by 19% year-over-year to US$4.2 billion.

On the big screen, Pixar’s Inside Out 2 (pictured) is sitting pretty as the highest-grossing animated feature of all time and also this year’s top-performing film. It has done US$1.5 billion in ticket sales since premiering on June 14, helping to drive Q3 earnings posted by Disney’s entertainment segment to US$1.2 billion—up from US$408 million in Q3 2023.

Up next is November’s Moana 2 and 2025 releases such as Pixar’s Elio and the Zootopia sequel. It’s worth noting that following weak box-office performances by original family titles like Wish (2023) and Strange World (2022), Disney has shifted into a risk-averse strategy with its animation slate and is more focused on extending established franchises right now—a move that’s also bolstering performance on Disney+. According to the Q3 report, original film Inside Out (2015) has generated more than 100 million views and driven upwards of 1.3 million sign-ups on the streamer since the sequel’s first teaser dropped last November.

While the outlook for Disney’s entertainment segment remains rosy, its experiences business took a slight dip in Q3. Revenue was up by 2% from last year, but income was down by 3% to US$2.2 billion.