Core Insights - Disney is expanding its flagship streaming service Disney+ and Hulu by introducing new subscriber benefits aimed at retaining existing users and attracting new ones [1][2] Group 1: Disney+ Subscriber Benefits - Disney+ subscribers will receive exclusive perks such as discounts at Disney theme parks, free in-game items, and a $10 credit on the Disney Pinnacle platform [1] - As of Q2 FY2025, Disney+ has approximately 124.6 million subscribers, a slight decrease from 125.3 million in the previous quarter [1] - The peak subscriber count for Disney+ was around 153.8 million at the end of Q3 FY2024 [1] - About 30% of Disney+ subscribers are using the ad-supported plan instead of the Premium (ad-free) option [1] - Management expects a slight quarter-over-quarter growth in Disney+ subscribers for the current Q3 [1] Group 2: Hulu Subscriber Benefits - Hulu subscribers can win tickets to live recordings of "Jimmy Kimmel Live!", Comic-Con, and Lollapalooza starting June 2 [2] - Users who subscribe to both Disney+ and Hulu can enjoy benefits from both platforms [2] - Disney's Executive Vice President, Samantha Rosenberg, emphasized that these exclusive benefits are a way to thank subscribers [2] Group 3: Subscription Pricing and Bundles - Disney+ offers a Basic plan at $9.99/month and a Premium plan at $15.99/month; Hulu's pricing ranges from $7.99 to $17.99/month depending on ad inclusion and Live TV [3] - The Disney Bundle includes Duo Basic (Disney+ with Ads + Hulu with Ads) at $10.99/month and Duo Premium (ad-free versions) at $19.99/month [4] - Existing subscribers can upgrade to the Bundle with automatic deductions applied [4] Group 4: Market Position and Resilience - Analysts believe that Disney+ and Hulu have the capability to withstand the current global tariff battles and are expected to show strong revenue resilience amid a weak macroeconomic environment [4]

Core Viewpoint - Disney's Q2 FY2025 earnings exceeded Wall Street expectations, leading to an upward revision of its annual outlook due to strong performance in its theme parks and streaming services [1] Financial Performance - Excluding certain items, Disney's Q2 FY2025 earnings per share (EPS) grew by 20% year-over-year to $1.45, surpassing the analyst consensus of $1.20 [2] - Total revenue for the quarter reached $23.6 billion, reflecting a 7% year-over-year increase, also above analyst expectations [2] Business Segments - The Disney Experience segment, which includes theme parks and cruises, benefited from increased visitor numbers in California and Florida, as well as significant holiday package sales [2] - The direct-to-consumer segment, including Disney+ and Hulu, achieved profitability for the fourth consecutive quarter, aided by recent price increases [2][3] - The film division saw strong revenue contributions from "Moana 2" and "The Lion King: Mufasa," which helped offset weaker box office performance from "Captain America: Brave New World" and "Snow White" [2] Future Outlook - Disney's management anticipates a slight increase in Disney+ subscription numbers for Q3 [2] - The company expects its streaming video business to contribute $1 billion in profit this year [3] - ESPN's operating profit is projected to grow by 18% for the full fiscal year, despite rising production costs [3] Shareholder Returns - Disney has repurchased $1.8 billion worth of stock so far this fiscal year [4] - Analysts believe that Disney+ and Hulu are well-positioned to withstand the challenges posed by the current global tariff situation [4]