Streaming Wars: Netflix and Disney Shift to Profitability

"Profit Over People": Why Netflix and Disney Are Done Chasing Subscribers

As the era of cheap streaming ends, giants like Netflix and Disney+ are prioritizing ad tiers and bundles to hit billion-dollar profit targets.

Marcus J. Delany

Mar 7, 2026, 10:42 PM PT · 1 min read

Netflix reported $2.33 billion in net income for Q1 2024 as it shifts focus away from subscriber

THE RUNDOWN

Netflix will stop reporting quarterly subscriber totals starting in 2025.
Disney’s streaming division reported its first $47 million profit in May 2024.
Netflix earned $2.33 billion in net income during the first quarter of 2024.
Disney and Warner Bros. Discovery launched a joint Disney+, Hulu, and Max bundle.
Comcast introduced the StreamSaver bundle including Peacock, Netflix, and Apple TV+.

The race for raw subscriber counts is officially over. Netflix shocked the industry by announcing it will stop reporting quarterly subscriber numbers in 2025, shifting its focus entirely to revenue and engagement metrics. This strategic pivot follows a blockbuster Q1 2024, where the company reported a massive $2.33 billion in net income. By phasing out its "Basic" ad-free plan, Netflix is successfully pushing viewers toward more profitable ad-supported tiers.

The Walt Disney Company is also seeing its streaming gamble finally pay off. In August 2024, the company’s combined streaming segment—which includes Disney+, Hulu, and ESPN+—turned its first-ever profit, posting $47 million in operating income for the quarter. CEO Bob Iger has signaled that sustainable profitability is now the company's primary goal, leading to significant price hikes across its ad-free tiers to bolster the bottom line.

To combat "churn"—the industry term for customers canceling services—former rivals are forming unlikely alliances. Warner Bros. Discovery and Disney recently launched a combined Disney+, Hulu, and Max bundle to offer more value. Meanwhile, Comcast introduced "StreamSaver," a discounted package featuring Netflix, Apple TV+, and Peacock. These partnerships aim to keep users locked into ecosystems while sharing the high costs of content production and customer acquisition.