Disney+ Hotstar sees marginal increase in paid subscribers in Q1

In the first quarter of the financial year, which for the company starts in October, Disney+ Hotstar’s paid subscriber base rose 2% sequentially, reaching 38.3 million. This growth comes despite a slight dip in the overall Disney+ subscriber numbers, which fell a 1% to 46.1 million.

The majority of the 38.3 million subscribers come from India, as per industry experts. Other markets make up a very small portion.

Disney+ Hotstar has seen a steady decline in its subscriber base in recent months, particularly after its peak of 61.3 million subscribers in September 2022. In India, the decline was exacerbated by Disney Star, also under the Walt Disney umbrella, losing the IPL streaming rights to Viacom18, alongside its decision not to renew the exclusive streaming rights for 144 HBO originals with Warner Bros. Discovery Inc., a move aimed at reducing costs. 

The platform, known as Disney+ Hotstar in India and other Asian markets such as Malaysia, Thailand and Indonesia, has been recalibrating its strategy towards a broader focus on general entertainment content, beyond its traditional stronghold in sports broadcasting.

Walt Disney Co. reported better-than-expected earnings for its fiscal first quarter and issued an upbeat profit outlook for the year, citing cost-cutting benefits and the strong performance of its international theme parks.

Earnings rose to $1.22 a share, excluding some items, Disney said. That beat the 99-cent average of Wall Street estimates.

During the quarter under review, the Arpu ((average monthly revenue per user) for Disney+ Hotstar increased to $1.28 from $0.70 due to higher advertising revenue and increases in retail pricing, partially offset by a higher mix of subscribers from lower-priced markets, the company said.

Disney announced a strategic $1.5 billion investment in Epic Games, signalling a deep dive into the gaming industry. This collaboration aims to merge Disney’s vast array of brands and franchises with the gaming world, notably through Fortnite, setting the stage for a new era of gaming and entertainment experiences. 

“…This marks Disney’s biggest entry ever into the world of games and offers significant opportunities for growth and expansion,” Robert A. Iger, chief executive officer, Walt Disney Co, said in a statement.

The developments come amid reports of Mukesh Ambani’s Reliance Industries Ltd nearing a deal with Walt Disney to buy its assets in India.

Reliance will likely pick a 60% stake in this new company for $2.28 billion–$2.4 billion, valuing Disney’s India assets between $3.8 billion and $4 billion. However, in its last earnings call, Iger had said that the company would like to stay on in the Indian market.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!

Published: 08 Feb 2024, 09:45 AM IST