Disney+Hotstar Sheds 3.8 Mn Subscribers In Dec Quarter After Losing IPL Rights

In its biggest-ever quarterly loss, streaming service Disney+Hotstar lost 3.8 Mn subscribers in the October-December quarter of 2022, months after it lost the digital media rights of the Indian Premier League (IPL).

The Disney-owned OTT platform’s subscribed base declined 6% quarter-on-quarter (QoQ) to 57.5 Mn as on December 31, 2022.

In the preceding September quarter, the platform had reported an almost 5% QoQ increase in its subscriber base, with addition of 2.9 Mn paid subscribers.

Overall, Disney+ lost 2.4 Mn subscribers globally to take its subscriber base to 161.8 Mn from 164.2 Mn in the previous quarter. The decline was driven by the loss of subscribers for Disney+Hotstar, but was partially offset by addition of 2 Lakh subscribers in the US and Canada market.

It is pertinent to note that Disney’s chief financial officer Christine McCarthy said in the previous quarter that there might be a decline in the subscriber base of Disney+Hotstar in the ongoing quarter due to the absence of the IPL. The company expects the subscriber base to stabilise in the next quarter, she added.

Last year, Disney lost the digital streaming rights of the marquee cricket tournament to Viacom18, ending its five-year monopoly of IPL rights. Viacom18 bagged the digital rights of the IPL for the 2023-27 period.

However, Disney+Hotstar witnessed an increase in average revenue per user (ARPU) in the December quarter despite subscriber loss. The average monthly revenue per paid subscriber for Disney+Hotstar rose to $0.74 (INR 61) in the December quarter from $0.58 in the previous quarter.

Globally, Disney+ earned $3.93 average monthly revenue per paid subscriber. Its ARPU stood at $5.62 in the quarter excluding Disney+ Hotstar.

While Disney+Hotstar was an undisputed leader in the Indian OTT market for a long period, analysts predicted it would lose out between 15 Mn to 25 Mn subscribers due to the absence of IPL in its portfolio.

The digital rights for the cricket tournament helped Disney+Hotstar grow and reach a leadership position in the crowded OTT market over the last few years. It had a 50% market share in Subscription Video on Demand (SVoD) OTT as of April 2022, according to an OMDIA report.

Last year, Disney reduced the subscriber target for Disney+Hotstar to 80 Mn by the end of FY24 from 100 Mn earlier.

According to a Deloitte report, the overall OTT space in India is expected to grow at a CAGR of more than 20% to reach $13 Bn−$15 Bn over the next decade. The SVoD market is expected to grow to $2.1 Bn from the current $0.8 Bn over the same period.

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