Over the past few years, Hollywood studios have begun to witness a turnaround in the fortunes of their streaming businesses. Many legacy studios are now reporting annual profits, while others are making significant strides toward achieving this vital goal.
Netflix continues to dominate the streaming sector, recently reporting growth in subscribers, revenue, and profit for 2024. On the other hand, traditional studios, having shifted their focus from merely increasing subscribers to enhancing streaming profitability, have also seen positive trends. Warner Bros. Discovery achieved a notable increase in 2023 profits for its streaming segment, whereas Disney reported its first comprehensive streaming profit for an entire calendar year. Competitors like Comcast’s NBCUniversal and Paramount Global managed to reduce their streaming losses significantly as they strive for future profitability.
A combination of factors has driven these positive financial outcomes, including careful spending on original content, strategic price hikes, and the introduction of lower-cost subscription plans that incorporate advertising. Analysts from MoffettNathanson noted, “Netflix spends more on direct-to-consumer (DTC) content than any other company, yet because of its size, its spend per subscriber is in line with peers. It also generates less revenue per hour of engagement than any other SVOD platform, yet the magnitude of its engagement means its aggregate revenues are second to none.”
However, the sustainability and scalability of streaming profits for companies other than Netflix remain uncertain. While expectations are low regarding their ability to match the profitability of cable networks in their prime—prior to the dramatic rise in cord-cutting—many industry analysts foresee significant changes ahead. These could manifest as consolidations, partnerships, and enhanced bundling of services among major streaming platforms. So, where do Netflix and the streaming units of major Hollywood studios stand as the curtain descended on 2024?
It is essential to understand that the groups encompassing Hollywood studios’ streaming sectors are not directly comparable. For instance, Warner Bros. Discovery’s “Direct-to-Consumer”unit encompasses both streaming and premium pay-TV services, notably HBO, while Disney’s “Direct-to-Consumer” division does not factor in ESPN+. Similarly, Comcast’s NBCUniversal provides distinct revenue reports for its streamer Peacock, which falls under its broader Media unit.
Additionally, while Netflix has historically concentrated on streaming video, it has recently made forays into other sectors, including gaming and merchandise.
Notably, Disney’s fiscal year runs until the fall, whereas The Hollywood Reporter compiled DTC results specifically focusing on the calendar years 2023 and 2024 for comparative analysis.
Let us now delve into the performance of Netflix and other major players in the streaming landscape for 2024.
Netflix
Netflix
Streaming Profit: $10.4B (+49% year-over-year)
Revenue: $33.7B (+16% year-over-year)
In 2024, Netflix achieved a milestone with its operating income exceeding $10 billion for the first time in its history. The platform’s hit series, including Fool Me Once, Bridgerton, and Squid Game Season 2, alongside films like Carry-On and Damsel, contributed to a global subscriber count of approximately 301.6 million, following an addition of around 9.5 million new users.
Although Netflix has ceased regular disclosures of subscriber data, it predicts revenue growth of 12-14 percent for 2025, estimating revenues to reach between $43.5 billion and $44.5 billion.
The company maintains an optimistic outlook, stating, “We estimate there are now 750 million-plus broadband households (excluding China and Russia) and $650 billion-plus of entertainment revenue in the markets we operate in, of which we only captured around 6 percent in 2024. Similarly, we believe we account for less than 10 percent of TV viewing in every country in which we operate, all of which suggests a long runway for growth as streaming continues to expand worldwide.”
Disney
Patrick Harbron/Disney
Streaming Profit: $574M (from loss to profit)
Revenue: $23.3B (+13% year-over-year)
Disney achieved remarkable success in 2024, showcasing subscriber gains, revenue growth, and a return to streaming profitability with Disney+ and Hulu. Notable original series like Shōgun, Agatha All Along, and Only Murders in the Building generated considerable audience engagement and acclaim.
As Disney CEO Bob Iger emphasized during a February earnings call, “The only way you succeed in global streaming, both from a subscription perspective and a profitability perspective, is through a combination of high-quality products, volume, and technology. We are well-positioned to grow both subscribers and profits over the long run.”
Warner Bros. Discovery
Colin Farrell in ‘The Penguin.’ / Macall Polay/HBO
Streaming Profit: $677M (+557% year-over-year)
Revenue: $10.3B (+1% year-over-year)
Warner Bros. Discovery wrapped up 2024 with robust gains in global streaming subscribers, including both Max and Discovery+, reaching nearly 117 million. The company set a goal of at least 150 million subscribers by the end of 2026, boosted by original content such as The Penguin, House of the Dragon, Industry, and True Detective: Night Country, as well as expansion into new international markets.
CEO David Zaslav remarked, “Max continues to grow at a powerful pace, and we expect it to continue throughout 2025 and beyond. In this generational media disruption, only the global streamers will survive and prosper, and Max is just that.”
Paramount Global
Emerson Miller/Paramount+
Streaming Profit: -$497M
Revenue: $7.6B (+13% year-over-year)
Paramount+ experienced subscriber growth in 2024, largely driven by original series such as Landman and Lioness, coupled with advertising revenue from ad-supported tiers and Pluto TV. Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins hailed 2024 as a transformative year for the company, emphasizing its transition to a streaming-first model, with a projected improvement in DTC profitability.
They expressed, “Direct-to-consumer (DTC) profitability improved by $1.2 billion in 2024, driven by an impressive year at Paramount+. We have great confidence that Paramount+ will achieve full-year domestic profitability for 2025.”
NBCUniversal
Fabrizio Bensch- Pool/Getty Images
Streaming Profit: -$1.8B
Revenue: $4.9B (+44% year-over-year)
According to Comcast CFO Jason Armstrong, NBCUniversal is successfully shifting its focus toward streaming, illustrated by Peacock’s substantial revenue growth and improvements to its bottom line. Armstrong stated that the upcoming year promises further improvements, particularly with events like the Paris Olympics and returning sports franchises driving subscriptions.
“We couldn’t be more excited for the year ahead as we welcome the NBA back to NBC and also on Peacock later this year,”he added.