Disney’s streaming business neared profitability in the second quarter of the year, boosted by the success of Hulu shows such as The Bear and Under the Bridge.

The direct-to-consumer entertainment division, which includes the Disney+ and Hulu streaming services, recorded a profit of $47 million for the three months to the end of March, up from a loss of $587 million during the same period last year.

It is the first time the entertainment arm of its streaming business has turned a profit since Disney+ was launched in 2019.

However, its combined streaming business with ESPN+ reported a loss of $18 million, compared with a loss of $659 million in the second quarter in 2023. Disney+ Core gained 6.3 million subscribers during the three-month period, bringing the total number of subscribers to 117.6 million.

Bob Iger, the chief executive of Disney, said: “We fully expect streaming to be a growth driver for the company in the future and we have taken steps to prioritise this.”

Iger said Disney would begin a global crackdown on password sharing in September, and added that it was a “necessary and very, very productive next step”.

Shares in Disney ended Tuesday down $11.08, or 9.5 per cent, at $105.39 in New York.

Disney expects its streaming business to be profitable in the fourth quarter and has forecast that its profitability will improve during 2025.

The American entertainment conglomerate reported revenues of $22.1 billion for the second quarter of the year, up from $21.8 billion during the same period last year. The results beat Wall Street forecasts, which predicted revenues of $20.5 billion.

Overall revenue in the ­enter­tainment division, which encompasses its traditional television business, streaming and film, fell by 5 per cent from a year earlier to $9.8 billion.

Increased spending at Walt Disney World resort and Disney Cruise Line boosted growth in the experiences division by 10 per cent. The unit reported revenue of $8.4 billion and operating income of $2.3 billion.

Disney’s sports division, which includes ESPN, the ESPN+ streaming service and Star in India, reported revenue of $4.3 billion, up 2 per cent on a year ago, and an operating profit of $778 million, down 2 per cent from the second quarter in 2023.

The quarterly results come after Iger fended off a challenge from activist investor Nelson Peltz who had been seeking two board seats.