Streaming Profit Report: Netflix Leads, Disney Rises, Warner Grows. Is Consolidation Next?

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After several years, it’s now evident that traditional Hollywood film studios’ streaming services are becoming profitable, while others are making steady progress towards achieving profitability.

In 2024, Netflix, known as the uncontested ruler of streaming services on Wall Street, increased its subscribers, earnings, and profits. Simultaneously, studios, who have recently prioritized profits from streaming after initially focusing on increasing subscribers, experienced significant changes in their financial status last year. For instance, Warner Bros. Discovery boosted the modest profit it made in 2023 for its business encompassing various aspects, including streaming operations. Meanwhile, Disney recorded its first-ever annual profit solely from its streaming services. Furthermore, NBCUniversal owned by Comcast and Paramount Global narrowed their losses in divisions primarily focusing on streaming, aiming to achieve profitability soon.

Enhancing profit margins were aspects like strategic spending on unique content, price hikes, and offering more affordable subscription plans that incorporate ads. As stated by analysts Robert Fishman and Michael Nathanson from MoffettNathanson in their February 11 report, “Netflix spends more on direct-to-consumer (DTC) content than any other company, but its spending per subscriber is comparable to competitors due to its large size. Additionally, it generates less income for each hour of user engagement compared to other streaming video on demand (SVOD) platforms; however, the vastness of its engagement results in second-to-none aggregate revenues.

By the close of 2024, it’s unclear if smaller streaming services can consistently generate sustainable and scalable profits like Netflix, given the financial dominance of cable networks prior to cord-cutting. However, analysts anticipate this streaming landscape to undergo significant changes, such as consolidation, collaborations, and more bundling among leading platforms. So, one might wonder about the positions of Netflix and the streaming divisions of Hollywood titans at the end of 2024.

When examining these companies’ streaming businesses for comparison, it’s essential to note that the segments are not identical. For instance, Warner Bros. Discovery’s “Direct-to-Consumer” (DTC) segment incorporates both its streaming services and premium pay-TV offerings, so HBO is included within this category. On the other hand, Disney’s DTC division does not encompass ESPN+. Furthermore, Comcast’s NBCUniversal separates Peacock revenue and profit as part of a broader Media unit.

As a dedicated gamer, I’ve noticed that Netflix, which was once primarily known for its streaming video services, is now venturing into new territories. They’re dipping their toes into the gaming world and even exploring merchandising options.

Analyzing streaming services offers valuable insights into long-term tendencies, even though direct comparisons may not be feasible. It’s important to note that Disney’s financial year extends into autumn, whereas The Hollywood Reporter assessed Direct-to-Consumer (DTC) results for the calendar years 2024 and 2023 to ensure a similar timeframe is under consideration.

Let’s delve deeper into the state of streaming businesses for Netflix and major Hollywood studios in the year 2024.

Netflix

Profit: $10.4B +49% year-over-year
Revenue: $33.7B +16% year-over-year

In 2024, Netflix experienced a significant increase in both its annual revenue and operating income, marking a historic milestone as the latter surpassed $10 billion for the first time. This successful streaming platform, known for popular series like “Fool Me Once,” “Bridgerton,” and “Squid Game” season 2, along with films such as “Carry-On” and “Damsel,” gained approximately 9.5 million new subscribers worldwide, concluding the year with a staggering 301.6 million users – a figure that sets it apart in the industry.

Due to Netflix no longer regularly sharing subscriber data, they are predicting a revenue increase of 12-14% for the year 2025, amounting to between $43.5 billion and $44.5 billion.

The company maintains its optimistic outlook, expecting further growth on the upward trend. They estimate there are over 750 million broadband households outside China and Russia, generating over $650 billion in entertainment revenue within their operating markets. In 2024, they only captured around 6% of this market. Moreover, they believe they account for less than 10% of TV viewership in every country they operate, hinting at a vast potential for growth as streaming services continue to expand globally.

Disney

Streaming profit: $574M swing to profit
Revenue: $23.3B +13% year-over-year

In 2024, Disney’s streaming services, Disney+ and Hulu, managed to increase subscribers, boost revenue, and even turned a profit. While ESPN+, part of the sports segment, is not included in this analysis by THR, it too has been showing impressive growth.

Among the popular shows attracting viewers and generating excitement were titles such as Shogun, Agatha All Along, and Only Murders in the Building.

In order to thrive in the international streaming market, considering both subscriptions and profitability, it’s crucial to have a strong blend of top-notch content, quantity, and technology,” Disney CEO Bob Iger stated during a February earnings call. “We believe that we are ideally situated to increase subscribers and profits over the long term when compared to our competitors in this field.

Warner Bros. Discovery

Streaming profit: $677M +557% year-over-year
Revenue: $10.3B +1% year-over-year

Warner Bros. Discovery concluded 2024 with a significant increase in global streaming subscribers, totaling approximately 117 million for Max and Discovery+. This growth was detailed in a shareholder newsletter, which also outlined a plan to reach at least 150 million subscribers by the end of 2026.

Contributing factors to this growth included popular originals such as “The Penguin”, “House of the Dragon”, “Industry”, and “True Detective: Night Country”, along with expansions into new international markets.

David Zaslav, CEO of WBD, shared on Wall Street that Max is consistently expanding rapidly and this trend is anticipated to persist through 2025 and beyond. He emphasized that during this era of significant media change, only global streaming platforms will thrive, and Max fits the bill perfectly. The conglomerate aspires for Max to rank among the top three streamers in every market it serves.

Paramount Global

Streaming profit: -$497M 
Revenue: $7.6B +13% year-over-year

2024 saw a surge in Paramount+ subscribers due to popular shows like “Landman,” “Lioness,” “Tulsa King,” “Tales of The Teenage Mutant Ninja Turtles,” and “Knuckles.” As Paramount Global prepared for its sale to Skydance Media this year, these titles helped increase the platform’s subscriber base. Meanwhile, ad-supported tiers and Pluto TV generated significant advertising revenue.

The trio of Co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, have hailed 2024 as a “pivotal year” marked by their transition into a company prioritizing streaming services. They boasted about the significant improvement in direct-to-consumer (DTC) profitability by $1.2 billion in 2024, largely due to Paramount+’s successful run. They are optimistic that Paramount+ will attain full-year domestic profitability in 2025.

Additionally, the co-CEOs applauded Paramount+ for reaching an all-time high in user engagement during the fourth quarter of 2024 and being ranked as the second most-watched domestic subscription video on demand (SVOD) service for hours watched across all original series.

NBCUniversal

Streaming profit: -$1.8B
Revenue: $4.9B +44% year-over-year

Jason Armstrong, Comcast’s Chief Financial Officer, mentioned during the company’s earnings call that our shift towards streaming is proving successful, with Peacock showing significant revenue increase and financial improvement. He further added that we anticipate ongoing improvements in Peacock’s EBITDA losses by 2025.

The 2024 Paris Olympics significantly boosted viewership on Peacock last year, similar to popular shows like NFL games, Love Island, Bel Air, and Fight Night.

The business continues to express optimism, with its executives expressing great enthusiasm for the upcoming year as they prepare for the return of the NBA on NBC and Peacock platforms, beginning in the autumn. (Armstrong made this statement.)

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2025-04-11 16:55