“In Q4, we expect D2C ad revenue to continue to benefit from higher advertiser demand at Hulu as well as from the ramp-up of the Disney+ ad tier.”

In context

“prove our ARPU. And we look forward to the additional market launches announced today, which should serve as a stepping stone on our path to profitability. Disney+ Hotstar subscribers declined this quarter as we adjusted our product from one centered around the IPL to one more balanced with other sports and entertainment offerings. I would also note that this business with its significantly lower ARPU compared to core Disney+ is not a material component of our overall D2C financial results. We will therefore continue to focus our commentary on the core Disney+ product. Hulu and ESPN+ subscribers were roughly comparable to Q2. Hulu remained profitable in the third quarter with advertising revenue increasing versus the second quarter, benefiting sequentially from a higher sell-through rate. In Q4, we expect D2C ad revenue to continue to benefit from higher advertiser demand at Hulu as well as from the ramp-up of the Disney+ ad tier. As we work toward achieving D2C profitability by the end of fiscal 2024, we don't necessarily expect the progress to be linear each quarter as the impacts of the transformative work we are doing take time to realize. We expect to see more meaningful improvement in our D2C losses by middle of fiscal 2024. These expectations and plans remain subject to all of the risks and assumptions we previously identified and are noting here today, which will require close and ongoing assessment. But we remain encouraged by the early results we've already realized and are optimistic about our path ahead. Moving on to our content sales line of business. Operating results declined by a little over $200 million versus the prior year. Lower results in the third quarter versus the prior year were due to lowe”