Disney+Hotstar loses 12.5 million subscriptions after cricket is removed

Disney+ Hotstar lost roughly 12.5 million subscribers in its third quarter, which concluded on July 1, as the lack of cricket content on its platform continues to sting them.

In a consistent trend, Disney+Hotstar has experienced a decline in subscribers for the third consecutive quarter, with the April-June period marking another significant drop. The company’s earnings report, released late on Wednesday, also highlighted challenges in international markets. Revenues from International Channels decreased by 20 per cent to $1.2 billion, and operating results shifted from a $166 million income to an $87 million loss.

One of the factors contributing to the decrease in advertising revenue was attributed to the lower rates associated with Indian Premier League (IPL) cricket programming. This impact was particularly evident in the earnings report.

At the end of June, Disney+Hotstar had 40.4 million subscribers, marking a notable decline of nearly 21 million since October of the previous year.

Disney’s CEO, Bob Iger, addressed the situation by discussing the company’s strategy to achieve profitability. He noted, “We have been evaluating various markets worldwide with the aim of prioritizing those that can help us transform this business into a profitable venture. This means that certain markets will receive reduced investment in local programming while maintaining service.”

Iger further emphasized that not all markets are equal in terms of their potential. The company’s path to profitability involves focusing on specific priorities on the international stage.

In broader financial terms, The Walt Disney Company reported a 4 per cent revenue growth for the quarter and an 8 per cent growth for the nine months.

Robert A. Iger, CEO of The Walt Disney Company, commented on the results, stating, “Our achievements this quarter reflect the ongoing transformation of Disney, as we work to restructure the company, enhance efficiency, and restore creativity as a central aspect of our operations.”

In the realm of international Disney+ services, excluding Disney+Hotstar, the average monthly revenue per paid subscriber increased slightly from $5.93 to $6.01. This uptick was attributed to factors such as raised retail pricing and favourable foreign exchange effects, which countered the impact of a higher percentage of wholesale subscribers.