Disney+ Hotstar, the streaming service under the Walt Disney Company in India, reported a 2% sequential increase in paid subscribers to 38.3 million for the October-December period.
Key Growth in India
India was the primary contributor to the growth in Hotstar subscribers, with a notable increase despite smaller markets like Thailand, Malaysia, and Indonesia.
Quarterly Performance Report
Disney+ Hotstar, following an October-September accounting year, disclosed its quarterly numbers on Thursday, showcasing the rise in paid subscribers.
Broader Context: Disney’s Earnings and Outlook
Disney reported better-than-expected earnings for its fiscal first quarter, citing cost-cutting benefits and strong performance in international theme parks. Earnings rose to $1.22 a share, excluding some items, with revenue remaining relatively stable at $23.5 billion for the December quarter.
Merger Talks and Strategic Investments
Amidst discussions of a merger between Reliance-backed Viacom18 and Disney Star, Disney’s agreement to sell 60% of its shareholding in Disney Star to Viacom18 and Bodhi Tree Investments was reported. Disney would retain a 40% stake in the merged entity.
Hotstar’s Strategic Shift
Disney+ Hotstar has been realigning its strategy in India, moving beyond sports broadcasting to focus on general entertainment content.
Revenue and Investment Strategy
The average monthly revenue per user (ARPU) for Disney+ Hotstar increased to $1.28 in the December quarter, driven by higher advertising revenue and retail pricing adjustments. Additionally, Disney announced a $1.5 billion investment in Epic Games, signaling a significant move into the gaming industry.
Conclusion
The rise in Hotstar subscribers amidst merger talks and strategic investments underscores the evolving landscape of streaming services in India, with Disney+ Hotstar adapting its strategy to capture broader market segments and revenue opportunities.
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