Disney+ Hotstar lost 12.5 mn paid subscribers amounting to 24 pc of total paid subscribers of the streaming platform during the quarter ended June 2023, says a report from Elara Capital.
It adds that with this, Disney+ Hotstar has lost 33 pc subscribers over the last three quarters, in line with its estimates of 35 to 40 pc.
IPL moving away, Jio cinema offering content free, Disney+ Hotstar offering ICC cricket World Cup free and HBO content too moving away, have been responsible for this decline, reasons Elara’s Karan Taurani.
However, the firm believes that the subscriber loss is now largely bottomed out and may see a stable subscriber base/marginal decline over the near term.
“In terms of revenue impact, the potential revenue loss will remain in the range of 50 to 60pc, as IPL was a large revenue contributor on AVOD; losses for Disney+ Hotstar is expected to be much lower YoY, as it would have expanded sharply, had they acquired digital rights at that hefty premium (Rs.240 bn). Pricing has remained stable YoY for Disney + Hotstar and we don’t expect any respite in this too, as cricket (key World Cup property) is available free on Disney+ Hotstar,” it added.
According to Elara, with World Cup available for free and free content offerings from JioCinema, OTT industry ARPUs will remain under check with little potential for growth over the medium term.
“Maintain our view that India OTT market will report lower growth rates due to arrest in SVOD revenue, on the back of premium content being offered free, which in turn will also delay their plans for a path towards profitability,” the report added.
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