SUMMARY
The average monthly revenue per paid subscriber for Disney+ Hotstar decreased from $0.64 to $0.58
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
Disney lost the digital streaming rights of IPL to Viacom18’s Voot earlier this year
Streaming service Disney+ Hotstar saw a decline in average revenue per user (ARPU) in the quarter ended October 1, 2022, despite subscriber addition.
“The average monthly revenue per paid subscriber for Disney+ Hotstar decreased from $0.64 to $0.58 due to lower per-subscriber advertising revenue and a higher mix of wholesale subscribers, partially offset by an increase in retail pricing,” the company said in its earnings release.
The Disney-owned over-the-top (OTT) platform saw nearly 5% quarter-on-quarter increase to its subscriber base with the addition of 2.9 Mn paid subscribers for the quarter ended October 1, 2022, reaching a total subscriber base of 61.3 Mn.
Moreover, chief financial officer Christine McCarthy also said that there might be a decline in the subscriber base of Disney+ Hotstar as well in the ongoing quarter due to the absence of the Indian Premier League (IPL). The company expects the subscriber base to stabilise in the next quarter.
A Grim Quarter For IPL Loss?
It is to be noted that Disney lost the digital streaming rights of IPL to Viacom18’s Voot earlier this year after its five-year monopoly of IPL rights. The auction was for the 2023-27 period where Voot emerged as the winner.
At that time, analysts told Inc42 that Disney+ Hotstar would lose out on anywhere between 15 and 25 Mn subscribers.
In the crowded OTT market, the digital rights for the marquee cricket tournament helped Disney+ Hotstar grow and reach a leadership position. It had a 50% market share in Subscription Video on Demand (SVoD) OTT as of April 2022, according to an OMDIA report.
Earlier this year, Disney reduced the subscriber target for Disney+ Hotstar to 80 Mn by the end of FY24 from 100 Mn earlier. The overall subscriptions of Disney+ will come down to around 215-245 Mn by FY24 from the initial guidance of 230-260 Mn.
However, McCarthy said that the company would refine this target further after the ICC and BCCI cricket rights sales processes are completed.
“We recently made the disciplined decision to not proceed with the Indian Premier League digital rights and we’ll evaluate these rights with that same discipline,” she said.
In India, Disney+ Hotstar competes against the likes of Amazon Prime Video, Netflix, zee5, Voot, SonyLIV, MX Player, among others.
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. Whereas the SVoD market is expected to grow to $2.1 Bn from the current $0.8 Bn over the same period.
FAQs
Ad revenue
According to the company's financial data, accessed by business intelligence platform Tofler, the streaming platforms' advertisem*nt revenue for FY23 grew 17.25 per cent to ₹1,974.80 in FY23 compared to ₹1,684.31 crore in the previous fiscal.
What is the average revenue per user for Disney plus? ›
Disney+ Average Revenue per Subscriber
Disney+ reports an average monthly revenue of $7.28 per Disney+ Core subscriber. That's an increase of 12.52% since April 2023, when the average paid subscriber generated $6.47.
What is Disney plus revenue? ›
Average monthly revenue per subscriber for Disney+ Core globally rose 6% sequentially to $7.28 while it dropped 2% in the U.S./Canada to $8.00.
What is the revenue of Disney in India? ›
Disney+ Hotstar, India's leading video OTT provider, reported a revenue of over 43 billion Indian rupees for financial year 2023.
Is Hotstar subscription ad free? ›
Users who have subscribed to Premium membership will not get any Ads except with LIVE content such as sports, live shows and certain non-fictional content. Users with Mobile and Super plans will get Ads on content.
What is the revenue growth of Hotstar? ›
Disney+ Hotstar, India's leading video OTT provider, reported a revenue of over 32 billion Indian rupees for financial year 2022. Despite increasing revenue figures in recent years, the company recorded losses. That same year, this amounted to over three billion rupees due to high expenses.
How is ARPU calculated? ›
How to calculate ARPU. ARPU is calculated by dividing your total revenue by your total number of users during the time period you want to measure. This could be a week, month, year, season, or any time frame relevant to a specific campaign or strategy where you want to measure revenue per user or revenue per customer.
What is Netflix's ARPU? ›
Netflix quarterly ARPU worldwide Q2 2024, by region
In the second quarter of 2024, Netflix revealed that its average monthly revenue per paying streaming customer in North America amounted to 17.17 U.S. dollars.
What generates the most revenue for Disney? ›
Entertainment is the largest segment for Disney thanks to its robust streaming business. Following closely behind is Disney's experiences revenue, which is quickly growing with a 7% increase year over year in the first quarter of 2024.
Is Disney+ turning a profit? ›
In a much-needed win for the Mouse House, the Walt Disney Company has announced that its Disney Plus streaming service has become profitable for the first time in its history.
Over two-thirds of the Disney Plus subscribers retain their subscriptions after 6 months. On average, 68% of Disney Plus subscribers retain their services after 6 months of subscribing to the platform.
How much is a Disney+ subscription? ›
Disney+ costs $7.99 a month for an ad-based subscription or $13.99 a month for an ad-free experience. Sarah Edwards is a freelance writer who regularly covers personal finance, credit, debt and insurance.
Who owns Disney now? ›
Disney's shares are owned by a mix of insiders, ordinary investors, and institutional investors. Disney's largest individual shareholders are the company's insiders, including the current CEO, Robert Iger, and top managers, such as Brent A. Woodford, Maria Elena Lagomasino, and Mary Barra.
What is the growth rate of Disney revenue? ›
Disney had revenue of $22.08B in the quarter ending March 30, 2024, with 1.23% growth. This brings the company's revenue in the last twelve months to $89.20B, up 2.55% year-over-year. In the fiscal year ending September 30, 2023, Disney had annual revenue of $88.90B with 7.47% growth.
How many paid subscribers does Disney Hotstar have in India? ›
Disney+ Hotstar, a part of the India business of the California-based entertainment giant Walt Disney Company, reported a 2 per cent rise in its subscriber count from 37.6 million at the end of September 2023 to 38.3 million as of December 2023.
How much did Disney pay for Hotstar? ›
Disney acquired streaming service Hotstar and Star TV channels - which has been a household name in India, when it paid $71 billion for 21st Century Fox global assets in 2019.
How much does Disney Plus make from ads? ›
Netflix and Disney+ US ad revenues
The company says Disney+ made $786 million, while Netflix earned $685 million. For the next two years, eMarketer says Netflix will overtake Disney+, earning $1.03 billion and $1.14 billion in 2024 and 2025, versus Disney+'s $912 million and $1.1 billion.
What is the cost of advertising on Hotstar? ›
Hotstar Advertising Cost
| Advertising Option | TMA Offer |
|---|
| Connected TV | ₹ 0.083 Per Impressions |
| Video- Self Serve Entertainment- | ₹ 0.054 Per Impression |
| Frames Ad- Self Serve Entertainment- | ₹ 0.032 Per Impression |
| Billboards- Self Serve Entertainment- | ₹ 0.032 Per Impression |
6 more rowsIn October last year, reports first surfaced that Reliance was evaluating Disney's India assets, encompassing the Disney+ Hotstar streaming service and Star India, at a valuation ranging from $7 billion to $8 billion. During the same period, Disney valued these operations at $10 billion.
