Disney Earnings: Smaller Streaming Losses Are Nice, but Subscriber Growth Needs Reinvigorating

Disney posted a disappointing fiscal second quarter as CEO Bob Iger has begun to make his mark. Parks remained impressive with strong top- and bottom-line results and streaming losses continued to shrink, but Disney+ lost subscribers and Hulu posted very modest gains. While the direct-to-consumer segment appears on the way to profitability by the end of fiscal 2024, we think Disney needs to expand the DTC customer base and drive stronger top line growth to replace declining linear networks revenue.