“`html
Disney plans to fully integrate Hulu into Disney+ by 2026, consolidating branded entertainment, general content, and sports within a single app. This strategic move aims to enhance customer experience and retention, targeting a projected reduction in customer acquisition costs by up to 30% and the addition of over 10 million subscriptions in Q4 fiscal 2025. The projected combined Disney+ and Hulu subscription base by year-end is 185.4 million.
In the third quarter of fiscal 2025, Disney’s Direct-to-Consumer segment reported $346 million in operating income, compared to a $19 million loss a year earlier. Revenues increased by 6% year over year, signaling a promising outlook for revenue growth alongside an anticipated increase in Average Revenue Per Paid Subscriber (ARPU).
Additionally, Disney’s fiscal 2025 earnings consensus estimate stands at $5.86 per share, reflecting a year-over-year growth of 17.91% and a forward price/earnings ratio of 17.5X, underperforming compared to the industry average of 20.88X. Disney shares have seen a 1.9% gain year-to-date, trailing behind the Zacks Consumer Discretionary sector’s growth of 10.4%.
“`
