Bob Iger, Disney CEO, shared on a recent investor call the company’s ambitious goal to turn its streaming business profitable by the end of next year. A key strategy in achieving this milestone is the launch of a new streaming service that merges Disney+ and Hulu, slated for release next spring.

Disney has been diligently working towards this goal since the debut of its streaming competitor, Disney+, in 2019. The company has invested heavily in subscriber acquisition, experimented with ad-supported tiers, introduced service bundles, and adjusted pricing in its quest to attract and retain viewers.

The recent investor call indicates that these efforts are paying off. Disney+ gained 7 million new subscribers in the last three months, predominantly opting for ad-supported tiers. The total global subscriber base now stands at 112 million, showcasing growth despite being dwarfed by Netflix‘s 247 million customers.

Citing successful shows like The Kardashians and Star Wars‘ Ahsoka series, Iger expressed confidence that Disney’s streaming services could reach profitability by the end of 2024. The recent surge in subscribers supports this trajectory.

Facing headwinds earlier in the year with a loss of over 11 million Disney+ subscribers globally, Disney implemented changes in its strategy. In October, the cost of the ad-free plan increased, aligning with a similar rise in Hulu’s prices. Other streaming services, including Netflix and Apple TV+, have also adjusted their pricing.

The upcoming combined Disney+ and Hulu service, set to launch in beta next month and fully in March, is a result of Disney’s $8.6 billion acquisition of the remaining third of Hulu from Comcast. While the pricing structure remains undisclosed, it is speculated that both premium and ad-supported models will be offered.

Despite the competitive landscape, Iger revealed Disney’s intention to license some content to Netflix, emphasizing that the company will retain its marquee intellectual properties. “Disney, Pixar, Marvel, Star Wars are all doing very well on our platform,” Iger stated, highlighting their significance to the present and future of Disney’s streaming business.