Having “hits” doesn’t matter. The only thing that matters is whether they can produce those hits profitably. They are borrowing billions of dollars to both produce and license content with the only real way to cover the cost and to make a profit is subscription revenue.

Most content on Disney+ has already made a sizable profit before it even gets to the channel and afterwards between theaters, video on demand, dvd rentals and sales etc.

Also there is the “flywheel”. Comic tie ins, theme parks and merchandise. Both Apple and Amazon have money to burn they don’t really need their streaming service to be profitable.

Hulu is also for all intents and purposes owned by Disney and it makes more from people who watch the ad supported tier than those who subscribe to the No Commercial options. It is also the successful over the top “cable provider”.