With the acquisition of 2.9 Mn paying customers for the quarter that ended on October 1, 2022, streaming service Disney+Hotstar had a roughly 5% quarter-over-quarter rise in its subscriber base, bringing its total subscriber base to 61.3 Mn. The over-the-top (OTT) platform, which is owned by Disney, had a decrease in average revenue per user (ARPU) during the quarter.
The absence of the Indian Premier League, according to Chief Financial Officer Christine McCarthy, may potentially result in a reduction in the subscriber base of Disney+Hotstar in the current quarter (IPL). In the upcoming quarter, the business expected a stabilization of the subscriber base.
It is to be mentioned that after losing the exclusive rights of the IPL for five years, Disney lost the digital streaming rights to Viacom18‘s Voot earlier this year. Voot won the auction, which covered the years 2023 through 2027.
Disney earlier this year decreased the subscription target for Disney+Hotstar from 100 million to 80 million by the end of FY24. Disney+’s entire subscriptions will decrease from the initial forecast of 230-260 Mn to around 215-245 Mn by FY24.
McCarthy clarified that when the ICC and BCCI cricket rights sales procedures are finished, the business would further hone in on this aim.
“We just exercised restraint in deciding not to move forward with the Indian Premier League digital rights, and we’ll exercise restraint in how we assess these rights as well, she added.
Disney+Hotstar faces competition in India from services like SonyLIV, MX Player, Zee5, Amazon Prime Video, and Netflix, among others.
According to a Deloitte analysis projects that over the next ten years, the whole OTT market in India would increase at a CAGR of more than 20%, reaching $13–$15 billion. While over the same time period, the SVoD market is anticipated to increase from its current $0.8 Bn to $2.1 Bn.
It is an Indian brand of over-the-top (OTT) subscription streaming service called Disney+ Hotstar (also known as Hotstar) is owned by Novi Digital Entertainment of Disney Star and run by Disney Media And Entertainment Distribution, these both are subsidiaries of The Walt Disney Company.
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