Disney+ Hotstar faces a decline of 12.5 million subscribers in its third quarter due to the absence of cricket content. The streaming platform has seen consecutive quarterly losses, impacting international revenues and prompting market prioritization strategies.
In a challenging trend, Disney+ Hotstar experienced a significant loss of 12.5 million subscribers during its third quarter, which concluded on July 1. This drop is primarily attributed to the absence of cricket content on the platform, a factor that continues to impact its performance.
The April-June period marked the third consecutive quarter in which Disney+ Hotstar faced a notable decline in its subscriber base. The revenue generated from International Channels also saw a decline of 20 percent, amounting to $1.2 billion, while the operating results shifted from a positive income of $166 million to a loss of $87 million.
The drop in advertising revenue can be traced back to reduced rates associated with Indian Premier League (IPL) cricket programming. This issue was highlighted in the company’s earnings report released late on Wednesday.
At the end of June, Disney+ Hotstar’s subscriber count stood at 40.4 million, reflecting a considerable decrease of nearly 21 million subscribers since October of the previous year.
Bob Iger, the CEO of Disney, commented on the ongoing situation, stating, “We have been assessing various global markets to strategically prioritize those that can contribute to making this business profitable. This entails reduced investment in local programming in certain markets while ensuring the service remains available.”
Iger emphasized that not all markets hold equal potential and that the company’s journey towards profitability involves concentrating efforts on specific international priorities.
In terms of overall financial performance, The Walt Disney Company reported a 4 percent growth in revenues for the quarter and an 8 percent growth for the nine-month period.
Robert A. Iger, CEO of The Walt Disney Company, noted, “Our results for this quarter reflect the remarkable changes we’ve implemented at Disney, as we work to restructure the company, enhance efficiency, and rejuvenate creativity at the heart of our operations.”
In the context of international Disney+ services, excluding Disney+ Hotstar, the average monthly revenue per paid subscriber slightly increased from $5.93 to $6.01. This boost is attributed to higher average retail pricing and a favorable foreign exchange impact, partially balanced by a higher percentage of wholesale subscribers.
-IANS
