Disney+ Hotstar witnessed a decline of approximately 12.5 million subscribers during its third quarter, which concluded on July 1. The absence of cricket content on the platform continues to adversely affect its performance.

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The period from April to June marks the third consecutive quarter in which Disney+Hotstar has experienced a substantial drop in its subscriber base. Revenues from International Channels for the quarter plummeted by 20 percent, amounting to $1.2 billion, with operating results shifting from a $166 million income to an $87 million loss.

The decline in advertising revenue is attributed to reduced rates, primarily stemming from the absence of Indian Premier League (IPL) cricket programming. The company elaborated on these financial insights in its recent earnings report released late on Wednesday.

As of the end of June, Disney+Hotstar had 40.4 million subscribers, marking a decline of almost 21 million subscribers since October of the previous year.

Addressing the situation, Disney CEO Bob Iger commented, "We have been examining various global markets to prioritize those that will contribute to transforming this venture into a profitable one. This entails allocating less investment in local programming in certain markets while still ensuring continued service."

Iger emphasized that not all markets carry the same significance and that their path to profitability involves establishing international priorities.

In the broader picture, The Walt Disney Company reported a 4 percent growth in revenues for the quarter and an 8 percent growth for the nine months.

Robert A Iger, CEO of The Walt Disney Company, remarked, "Our quarterly performance mirrors the achievements attained through the extraordinary overhaul taking place at Disney. This transformation aims to restructure the organization, enhance efficiency, and reinstate creativity as the cornerstone of our operations."

When considering International Disney+ figures (excluding Disney+ Hotstar), the average monthly revenue per paid subscriber witnessed a rise from $5.93 to $6.01. This increase is attributed to higher average retail pricing, favorable foreign exchange impacts, albeit partially offset by a greater proportion of wholesale subscribers.