The total subscriptions to Disney+ will be reduced to approximately 215-245 million in FY24, down from the initial forecast of 230 to 260 Mn
Disney+Hotstar had 58.4 million paying subscribers at the time of June 2, 2022. an increase of 30% from year to year
Reliance’s Viacom18 defeated Disney Star to take over IPL’s digital rights over the coming five seasons, which will end Disney’s five-year-long monopoly on all IPL rights to broadcast.
The Walt Disney Co. has cut the target of subscribers for Disney+Hotstar its subscription service that is available in India as well as other regions of Asia by 80 million at the end of FY24, down from 100 million earlier. The total number of subscribers to Disney+ will fall to approximately 215-245 million by FY24 , down from the initial forecast of 230-260 million.
In the course of its earnings conference, Christine McCarthy, the senior executive vice-president and chief of finance for Walt Disney, said, “We are currently updating our guidance for subscribers in the case of Disney+ Hotstar to up to 80 million subscribers at the end of fiscal 2024.”
McCarthy has stated McCarthy that Walt Disney will refine this goal further once it is completed. ICC as well as BCCI selling of rights to cricket are concluded.
“We have recently taken the decision that was disciplined to not pursue this project. Indian Premier League digital rights and we’ll be evaluating the rights using that exact same discipline.” McCarthy added.
The move by Disney comes after Disney+Hotstar was denied the right for streaming the Indian Premier League (IPL) the most profitable sport league, and the second-highest-paying sports league worldwide by revenue per match that is earned through TV and streaming.
Disney+Hotstar has 58.4 million paid subscribers on the 2nd of July, 2022. That’s an increase of 30% from the 44.9 million it had a year earlier.
In the company’s earnings report that the average monthly income per subscriber paid for Disney+Hotstar was $1.20 due to an increase in the per-subscriber revenue for advertising. Disney in general reported a greater advertising revenue for the fiscal because of IPL matches, the company said.
A few days ago, a number of journalists and OTT analysts had told Newsexposer the Disney+Hotstar was likely to lose as much as 25 million customers in India following the failure to obtain IPL’s digital rights over in the coming five years. Reliance’s owned Viacom18 defeated Disney Star to get IPL’s digital rights which ended the five-year-long monopoly on every IPL television rights.
Viacom18 was awarded the digital rights to both non-exclusive and exclusive matches Packages B and A together, which totaled INR 23,758 crore for up to five years while Disney was forced to stick with TV rights which is Package A at INR 23,575 crore.
Disney Star depended on the huge demand for sports-related content in India to develop Disney+Hotstar. The company also added sports events like Formula 1, the English Premier League and the FA Cup to its roster.
Disney+Hotstar’s dependence on IPL was so strong that McCarthy in the last earnings conference in April, declared it to be the main factor behind the platform’s success. But now, with IPL gone it appears that the OTT platform is losing its largest product, prompting speculation about a possible exodus of users.
Karan Taurani, senior vice president of Elara Capital, told Newsexposer earlier that Elara Capital’s OTT platform is at risk of losing more than 50 percent of its subscribers and would require a strong original content to come back.
India’s OTT revenue is expected to grow to $4.5 Billion by 2026, according to Media Partners Asia. According to a report from Omdia, Indian OTT platforms have spent $500 million on original content in 2021.
Disney+Hostar is likely to face fierce opposition from the other OTT competitors in India such as Amazon Prime Video, ZEE5 and SonyLiv and many more.
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