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- Disney's streaming services reeled in record profits last quarter.
- The Mouse House was boosted by price increases amid stalled US streaming viewership.
- The company has some ideas to jump-start engagement, from AI videos to a coming homepage redesign.
Disney's price increases are working like magic.
The Mouse House's streaming business enjoyed record profits in the last three months of 2025, the company reported on Monday.
Disney+ and Hulu generated $450 million in operating income last quarter, up 72% from a year earlier, and far above the $352 million it brought in during the prior quarter.
Higher subscription fees drove the lion's share of Disney's revenue increase, growing 13%. Streaming revenue from other sources — including advertising — ticked up by 4%.
Price hikes are Disney's not-so-secret pixie dust, as the company has raised prices for Disney+, Hulu, or both in each of the past five years, including in October. The ad versions of both Disney+ and Hulu rose $2 to $11.99 a month, while the ad-free version of Disney+ jumped to $18.99, matching the cost of ad-free Hulu.
It's a similar story in Disney's experiences division: the company posted record profits last quarter after raising prices in its parks for the fourth straight year.
It's not all a fairy tale, however. Viewership growth for Disney's streaming services hasn't kept pace with its subscriber gains or price hikes. Disney's viewership share has barely grown in the past four years, according to Nielsen data based on watch time on US TVs.
Disney has several ideas for improving engagement on its streaming platforms, including AI-generated content, short-form video, and a new homepage that the company said is launching this fall.
