^{A statue of Walt Disney and Mickey Mouse stands in a garden in front of Cinderella’s Castle at the Magic Kingdom Park at Walt Disney World on May 31, 2024, in Orlando, Florida. | Gary Hershorn | Corbis News | Getty Images}

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Disney’s upcoming earnings report on Thursday is drawing intense attention from investors, with its streaming operations—Disney+, Hulu, and the recently launched ESPN direct-to-consumer app—at the center of focus. This quarter is especially notable as it will be the last time the entertainment giant discloses its subscriber count and average revenue per user (ARPU) metrics, marking a major shift in how the company communicates its performance to shareholders.

The earnings call with analysts is scheduled for 8:30 a.m. ET, and analysts expect earnings per share (EPS) of $1.05 and total revenue of $22.75 billion, according to LSEG consensus estimates. Investors will be watching closely to see how Disney’s cost-cutting efforts, price hikes, and strategic changes have impacted both profitability and subscriber trends.

Disney’s Streaming Evolution

In August, Disney reported approximately 128 million Disney+ subscribers and 55.5 million Hulu subscribers, while ESPN+ had continued steady growth before being integrated into the new ESPN app. This unified ESPN app now provides a single platform for all sports content—an essential move as Disney prepares to compete more directly with streaming sports rivals like Amazon’s Prime Video and Warner Bros. Discovery’s Max.

However, starting this quarter, Disney will stop reporting individual subscriber and ARPU data for Disney+, Hulu, and ESPN+, following Netflix’s lead earlier in the year. The move has raised eyebrows among investors who see subscriber transparency as key to understanding long-term growth and monetization.

Adding to investor curiosity is Disney’s October price increase for its streaming services—part of CEO Bob Iger’s strategy to prioritize profitability over raw subscriber growth. Analysts estimate that these price hikes could add several hundred million dollars in annual revenue, but may also pressure growth in emerging markets.

Controversies and Subscriber Impact

This quarter’s subscriber data may reflect fallout from a temporary suspension of “Jimmy Kimmel Live!” in September. The show was pulled briefly after comments by the host regarding political figures drew backlash. While the program returned within a week, multiple reports suggested Disney experienced a short-term dip in subscriptions during that period—an event that could show up in the final reported numbers.

Despite occasional controversies, Disney+ has remained one of the strongest performers in the streaming sector, accounting for nearly 25% of Disney’s total media revenue. The company has been increasingly investing in original international content to expand its global footprint, especially in markets like India, the UK, and Latin America.

The Struggle of Traditional TV

Beyond streaming, Disney’s traditional TV business—home to ABC, ESPN, FX, and National Geographic—faces continued headwinds. Advertising revenue has declined across the industry, with Warner Bros. Discovery and Paramount Global reporting double-digit drops in linear network revenue earlier this quarter.

Disney has faced similar challenges. Analysts expect another decline in operating income from linear networks, driven by shrinking ad sales and higher content costs. The shift of sports rights and entertainment programming toward streaming platforms has accelerated the erosion of the cable bundle model, putting more pressure on legacy TV divisions to adapt or consolidate.

The Bigger Picture for Investors

Disney’s stock has seen modest recovery over the past six months, climbing roughly 18% year-to-date, as investors gained confidence in the company’s restructuring strategy and streaming profitability goals. The key question heading into Thursday’s report is whether these trends are sustainable—and if Disney’s push toward bundled streaming, international growth, and live sports streaming can offset losses in traditional media.

Wall Street analysts remain cautiously optimistic. Some predict that Disney’s operating margins will improve in early 2025, aided by cost reductions and stronger ad revenues from its newly integrated Hulu-on-Disney+ experience. Others warn that the absence of detailed subscriber data could make it harder to evaluate Disney’s long-term competitive position.

As the entertainment landscape continues to evolve, this earnings call could be a defining moment for Disney’s next chapter—balancing legacy strength with the demands of the digital future.