Disney+ Hotstar achieved a groundbreaking global live streaming viewership record on November 19, during the ICC ODI World Cup 2023 final between India and Australia. Surpassing its own previous record set during the India versus New Zealand semi-final on November 15, the streaming service reached an impressive 55 million concurrent viewers.
As the current leader in India’s thriving streaming landscape, Disney+ Hotstar has experienced a consistent streak of record-breaking achievements over the past month. This success was fueled by a strategic move to provide free ad-supported streaming of major cricket events, including the ICC Men’s Cricket World Cup and the recently concluded Asia Cup, exclusively to mobile users in India. This initiative, announced by Sajith Sivanandan, head of Disney+ Hotstar, in June 2023, aimed to broaden the audience and contribute to the overall growth of the streaming ecosystem.
Amid these achievements, Disney is actively considering various options for its India business, inherited through the acquisition of 21st Century Fox in 2019. Reports suggest that Disney is exploring potential sales or joint ventures for its Star India, now Disney Star, business. Disney CEO Bob Iger, acknowledging India’s significance as one of the most populous countries globally, expressed a desire to stay in the market while seeking ways to strengthen their position and enhance the bottom line.
The company’s linear television business in India has proven profitable, as indicated by Iger during a recent earnings call. However, other segments of the business, including Disney+ Hotstar, present challenges.
World Cup season helps Disney+ Hotstar a Groundbreaking surge in Viewership
Novi Digital Entertainment, Disney’s subsidiary owning Disney+ Hotstar, reported a substantial 118 percent increase in net loss to Rs 748 crore in the financial year ending March 31, 2023, compared to Rs 343.16 crore loss in FY22. Despite this, revenue experienced a notable 35 percent jump to Rs 4,341 crore for FY23 from Rs 3,259 crore in FY22.
Disney+ Hotstar has faced difficulties in retaining subscribers, losing approximately 23.7 million paid subscribers within a year, including a 2.8 million drop in the latest quarter. The overall subscriber base declined to 37.6 million for the quarter ending September 2023, down from its peak of 61.3 million in October the previous year. The decline is attributed to the loss of key content offerings, specifically IPL streaming rights and premium HBO content, now held by Viacom18’s JioCinema.
During a conference call in August 2023, Kevin Lansberry, Disney’s interim CFO at the time, attributed the subscriber decline to a product adjustment, shifting from a focus on the IPL to a more balanced offering including other sports and entertainment content.
In the previous year, Disney Star secured digital and television rights for all ICC events until the end of 2027 for a reported $3 billion, sublicensing the television rights to Zee Entertainment Enterprises.
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