Disney+ Hotstar, a streaming platform, in India, faced a setback during the June quarter as it experienced a decline of 24% in its subscriber base. This translates to a loss of 12.5 million users. The platform has been witnessing declines mainly due to the loss of broadcasting rights for the Indian Premier League (IPL) and the conclusion of partnerships with HBO. In addition to that the rise of JioCinema, as a competitor and its introduction of content have further contributed to Hotstars decline.
Disney+ Hotstar, a prominent streaming platform in India, has experienced its most substantial decline in subscribers since its inception during the June quarter. According to the latest quarterly report, there has been a 24 percent reduction in Disney+ Hotstar’s subscriber count in India. Impressively, the platform saw a staggering loss of 12.5 million subscribers during this quarter, marking the highest decline ever recorded. This unfortunate trend has persisted for three consecutive quarters.
Over the past nine months, a total of more than 21 million subscribers have bid farewell to the platform. Notably, the initial decline coincided with the quarter that featured the Indian Premier League (IPL), for which Disney+ Hotstar no longer possesses broadcasting rights.
In June of the previous year, Disney-Star lost its digital broadcast rights for the IPL to Reliance-owned Viacom18. Concurrently, the collaboration between HBO and Hotstar has ceased, resulting in the absence of popular and highly-watched shows like Succession, Game of Thrones, and Westworld, among others. JioCinema has already secured a content deal with HBO.
Furthermore, JioCinema has introduced an array of original content in various local languages such as Marathi, Bengali, Gujarati, and Bhojpuri. This diverse collection encompasses genres ranging from action, drama, thriller, and romance, to horror and musicals.
The decline in Disney+ Hotstar’s subscriber base has been progressively noticeable over the last few quarters. Between September 2022 and March 2023, the platform witnessed a significant loss of more than ten million subscribers. This downward trend coincided with the absence of its flagship offerings—HBO content and the IPL. Experts had projected a potential loss of 15-25 million subscribers due to the removal of digital rights for the IPL. Consequently, the platform has suffered a cumulative loss of 21 million subscribers across the last three quarters.
This decrease in subscribers aligns with the ascent of JioCinema, owned by Reliance Industries, which has nearly matched YouTube‘s monthly viewership. As indicated by Reliance Industries’ June quarter release, a staggering 449 million individuals tuned in for the IPL, with an impressive 120 million joining for the final match. JioCinema’s IPL coverage also yielded record-breaking advertising revenue.
Remarkably, JioCinema’s advertising revenue surpassed that of television, with the platform attracting over 13 times the number of advertisers. Following suit, Hotstar has decided to offer free streaming of the upcoming ICC Men’s ODI World Cup 2023. The extent of viewer engagement with this event remains to be seen.
