Disney is undertaking a strategic effort to rejuvenate its streaming business in India, which has been facing challenges due to a subscriber and financial losses. The company’s Indian streaming operations, Hotstar, reported a loss of $41.5 million on revenue of $390 million for the year ending March 2022. This decline was due to a significant reduction in subscribers, with the user base shrinking by a third between October of the previous year and July.
Disney’s initial optimism about the Indian market’s readiness to pay for streaming services was disillusioned when the company’s subscribers left in large numbers after the IPL cricket rights moved to the free JioCinema. This unexpected shift prompted Disney to reassess its strategy.
In response to these challenges, Disney is adopting a new “hybrid model” for its streaming service. The cornerstone of this model is offering live cricket matches on mobile devices for free. This approach is designed to attract a broader audience, tap into the cricket-crazy nation’s enthusiasm, and consequently boost advertising revenue. The company is also aiming to encourage new subscribers to join the Hotstar TV app, where cricket content will remain available under paid plans.
This move is predicted to significantly increase viewership, with estimates indicating that more than 450 million viewers could tune in during the 50-over World Cup hosted by India. Disney is aiming for a record-breaking 50 million concurrent viewers during the World Cup, double the figure achieved in 2019. It is about 56% higher than what JioCinema recorded during IPL 2023.
There are too many things Hotstar could do for retaining or expanding their subscribers. Let’s see how this helps.