Disney's Streaming Unit Swings to Profit as Cable and Theme Parks Lose Steam

Streaming on the Rise

The Walt Disney Company's streaming unit has swung to a profit, while its cable and theme park businesses continue to struggle. The company reported on Wednesday that its streaming services, which include Disney+, Hulu, and ESPN+, generated $1.5 billion in revenue in the fourth quarter, up 34% from a year ago. The streaming unit also turned a profit for the first time, earning $233 million in the quarter.

This growth has been driven in part by the release of several popular new shows and movies on Disney+, including "The Mandalorian," "Loki," and "Luca." Disney+ has also benefited from the pandemic, which has led to more people staying home and streaming content.

Cable and Theme Parks in Decline

In contrast to the success of its streaming business, Disney's cable and theme park businesses have continued to struggle. Revenue from Disney's cable networks fell 3% in the fourth quarter, and operating income declined 10%. This decline is due to a number of factors, including cord-cutting and the rise of streaming services.

Disney's theme parks have also been hit hard by the pandemic. Revenue from Disney's theme parks fell 53% in the fourth quarter, and operating income declined 89%. The parks have been closed or operating at limited capacity for much of the past year due to the pandemic.

The Future of Disney

The success of Disney's streaming unit and the decline of its cable and theme park businesses is a sign of the changing media landscape. Consumers are increasingly turning to streaming services for their entertainment, and this trend is likely to continue in the years to come.

Disney is well-positioned to benefit from this trend, given its strong portfolio of streaming services. However, the company will need to continue to invest in its streaming business and develop new content to keep up with the competition.