Old Hollywood is finally doing what Netflix Inc. has been doing for over a decade: making money from streaming.

The results show that a turnaround started by Iger was paying off. Since he returned, Disney has cut back on original content for its streaming service after a spending spree under predecessor Bob Chapek that led to streaming quarterly losses of $1.5 billion in November 2022.

Disney’s streaming business and studio gained momentum in the September quarter, while its cable and theme park profit engines lost steam, underscoring the diverse set of challenges the entertainment giant faces as it positions itself for the future.

Disney on Thursday reported fourth-quarter adjusted profits that surpassed Wall Street's expectations. Driven by strong performances from its entertainment division and streaming services, these results highlight the company's successful strategy in capitalizing on high-demand content and digital offerings.

Walt Disney Co. saw streaming profits grow in the latest quarter, underscoring progress on the company’s effort to transform direct-to-consumer distribution, recently a loss-making endeavor, into a financial engine.

Walt Disney Co. posted fiscal fourth-quarter sales and profit that beat Wall Street estimates and forecast earnings growth for the next three years, a rare event for a company that historically hasn’t made long-range profit projections.

The media giant's streaming services, which include Disney+, Hulu and ESPN, posted $321 million in operating income in its fourth quarter.