Disney to Merge Hulu into Disney+, Stops Reporting Subscriber Metrics.

Disney is merging Hulu with its Disney+ streaming service, with Hulu becoming a category within Disney+. The company will no longer report subscriber numbers or revenue for either service. Disney's Q3 revenue was $23.7 billion, with an adjusted per-share profit of $1.61. The streaming division's revenue grew 6% YoY to $6.2 billion, with an operating profit of $346 million. Disney+ added 1.4 million subscribers, while Hulu added 1.3 million. The merger will likely impact investors' ability to gauge the health of Disney's streaming business.

The Walt Disney Company reported strong financial results for its third fiscal quarter ended June 28, 2025, with revenues increasing 2% to $23.7 billion compared to the same period last year [1]. The company's adjusted earnings per share (EPS) improved to $2.92, a significant increase of over 100% from $1.43 in the prior-year quarter [1].

The Entertainment segment, which includes streaming services, saw its revenue grow 6% year-over-year (YoY) to $6.2 billion, with an operating profit of $346 million. This growth was driven by a 6% increase in Direct-to-Consumer (DTC) revenue, which includes both Disney+ and Hulu subscriptions [1]. Disney+ added 1.4 million subscribers, while Hulu added 1.3 million subscribers, bringing the total DTC subscriptions to 183 million [1].

However, the company's Linear Networks segment, which includes traditional television networks, saw a decline in operating income due to lower results in Content Sales/Licensing and Other, partially offset by an improvement in DTC [1]. The Sports segment, which includes ESPN, saw an 18% increase in operating income, primarily driven by a $314 million loss at Star India in the prior-year quarter [1].

Disney has announced plans to merge Hulu with its Disney+ streaming service, with Hulu becoming a category within Disney+. The company will no longer report subscriber numbers or revenue for either service, which may impact investors' ability to gauge the health of Disney's streaming business [1]. The merger is expected to create a more integrated streaming proposition that harnesses the highest-caliber brands and franchises, general entertainment, family programming, news, and industry-leading sports content [1].

Looking ahead, Disney expects total Disney+ and Hulu subscriptions to increase by more than 10 million compared to Q3 fiscal 2025, with the majority of the increase coming from Hulu as a result of an expanded Charter deal [1]. The company also expects adjusted EPS to increase to $5.85 for fiscal 2025, an 18% increase over fiscal 2024 [1].

References:
[1] https://thewaltdisneycompany.com/the-walt-disney-company-reports-third-quarter-and-nine-months-earnings-for-fiscal-2025/