Shillong, August 10: Disney+ Hotstar experienced a decline of approximately 12.5 million subscribers in its third quarter, ending on July 1, primarily due to the absence of cricket content on its platform.
This marks the third consecutive quarter of notable subscriber loss for Disney+ Hotstar. The absence of cricket content had a significant impact on the company’s revenues. International Channels revenues for the quarter saw a 20% decrease, amounting to $1.2 billion. Operating results also shifted from a $166 million income to a loss of $87 million.
As per IANS, the decrease in advertising revenue was attributed to lower rates stemming from Indian Premier League (IPL) cricket programming, according to the company’s earnings report released late on Wednesday.
Disney+Hotstar’s subscriber count stood at 40.4 million by the end of June, showing a decline of nearly 21 million since October of the previous year.
In response to these challenges, Bob Iger, Disney CEO, stated that the company is focusing on prioritizing markets that can contribute to turning the business profitable. This approach involves varying levels of investment in local programming based on market dynamics.
Overall, The Walt Disney Company reported a 4% revenue growth for the quarter and an 8% growth for the nine-month period.
Robert A Iger, CEO of The Walt Disney Company, highlighted the ongoing transformation of the company and its efforts to enhance efficiency and restore creativity to the core of its operations.
International Disney+ revenues (excluding Disney+ Hotstar) saw an average monthly increase in revenue per paid subscriber from $5.93 to $6.01. This change was influenced by factors such as higher retail pricing and a favorable foreign exchange impact, partially offset by a higher proportion of wholesale subscribers.
