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Bob Iger Prepares to Fend Off Activists as Streaming Finances Improve; streaming business lost $216 million in its latest quarter, an improvement from $387 million the prior quarter

The entertainment giant reported higher average revenue per user at Disney+, even as subscribers dipped slightly following a price hike.

The Walt Disney Co. reaffirmed that its streaming business will be profitable this summer (its fiscal fourth quarter), as losses narrowed in the division thanks to higher revenue per user and efforts to control costs. On the earnings call, Disney CEO Bob Iger, in what will likely be his biggest platform to send a message to Wall Street ahead of the company’s annual meeting in April, announced a slew of projects and deals, including a partnership and $1.5 billion investment in Epic Games that will bring Disney franchise IP to the Fortnite universe; a surprise Moana sequel, which will hit theaters this year; a deal to bring Taylor Swift’s Era’s Tour movie to Disney+ next month; and a fall 2025 launch date for ESPN’s direct-to-consumer flagship service. In streaming, Disney CFO Hugh Johnston said on the call that the goal is to have double digit margins, comparable to Netflix, and that the company will embark on its password sharing crackdown later this year.

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