Netflix Profits Exceed Disney’s Streaming Success by 20x in New Report from THR: Is Bob Iger’s Strategy Failing?

The latest figures from streaming giants Netflix and Disney offer a stark comparison, underscoring Netflix’s increasing dominance and highlighting Disney’s continued struggle to achieve the scale and profitability initially promised by Disney+. Of course, YouTube is dominating both companies in terms of ratings, viewership, revenues, etc… but let’s set it aside for the time being given how far it is ahead from all other streaming competition.

I’d like you to read the article. (Thanks
in advance!). That said, the headline gets right to it:

“YouTube is about to eclipse Disney as the biggest media company in the world.” pic.twitter.com/MCbW6uHqZf

— Peter Kafka (@pkafka) March 31, 2025

In 2024, Netflix reported an impressive $33.7 billion in revenue, marking a 16% increase year-over-year. The company’s operating profit surged an astonishing 49%, surpassing the $10 billion mark for the first time in its history, ultimately hitting $10.4 billion. Netflix continues to attract subscribers at an enviable pace, gaining 9.5 million global subscribers last year and ending 2024 with a formidable 301.6 million subscribers worldwide. The streaming giant projects further strong growth in 2025, expecting revenue between $43.5 billion and $44.5 billion, marking a 12-14% annual increase.

By contrast, Disney’s combined streaming operations (Disney+ and Hulu, excluding ESPN+) reported significantly smaller figures, albeit still posting growth. In 2024, Disney’s streaming platforms generated $23.3 billion in revenue, a year-over-year increase of 13%. Critically, Disney managed a “$574 million swing into profitability”, a positive but modest achievement compared to Netflix’s multibillion-dollar profits. However, it should be noted that Disney’s revenue growth may be a result of Hulu and its acquisition, while Disney+ may be stagnant. Disney does not break down the numbers publicly for the two streaming platforms. Confusingly, while they do not include ESPN+ in their revenue reporting for the other two streaming services (at least, maybe not), they do report on consumption and ratings with all three services combined. 

Moana in Moana (2016), Walt Disney Studios

Though Disney CEO Bob Iger has emphasized the company’s strategic position, declaring success based on subscriber growth, revenue increase, and the shift to profitability, the stark reality is that Disney’s streaming segment has fallen far short of initial expectations. Disney invested heavily in acquiring Hulu, reportedly spending tens of billions, and poured billions more into launching Disney+. Yet, despite heavy investments in original content such as “Shōgun,” “Agatha All Along,” and “Only Murders in the Building,” the platform has struggled to achieve profitability at scale. It takes a very long time time to make up being tens of billions of dollars in the hole with sophist statements about “swings to profitability.” Disney’s sometimes very hard to pin down in terms of exactly what is going on with their streaming revenues, and complicated statements sometimes add to that. For example, Disney emphasized in late 2024 that their streaming services had $324M in “operating income” after becoming profitable for the first time in the prior quarter — but “operating income” and “profit” aren’t the same. What was the real “profit” after taxes and other differentials in Q4 of 2024? Who knows?

Moreover, Disney’s aggressive discounting of Disney+—offering subscriptions for just $2.99 per month for four months during March—further signals potential weakness rather than strength. Such deep discounting usually suggests struggles in subscriber acquisition and retention. Netflix, by contrast, has largely refrained from deep price cuts, reinforcing the robustness of its subscriber base and its ability to command pricing power without sacrificing profitability.

Bluey, Bingo, and Bandit from Bluey – Disney Plus

Analyzing expenses versus revenues further underscores Disney’s streaming shortcomings. The cost of acquiring, launching, and scaling Disney+ and Hulu easily totals tens of billions of dollars, dwarfing the modest $574 million profit swing. When compared against Netflix’s impressive $10.4 billion annual profit, it becomes clear that Disney’s returns on its massive investments have been notably underwhelming.

Netflix’s sustained growth and profitability demonstrate a business model thriving from established consumer loyalty, premium content, and technological leadership in global streaming. Disney, while undeniably a powerhouse in traditional entertainment, remains challenged in replicating Netflix’s streaming success.

While Disney celebrates modest victories in streaming, it remains far behind Netflix, whose performance sets an industry benchmark. Considering the substantial investment required and the limited financial return thus far, Disney+ has, in many respects, been a disappointing venture—particularly when measured against Netflix’s clear dominance and profitability.