Disney+ Hotstar, a prominent streaming platform in India, is currently grappling with a significant decrease in its subscriber base. Recent data accessed by CNBC-TV18 indicates that nearly 10 million subscribers, precisely 8.4 million, have abandoned the platform over the past six months.
This decline coincides with The Walt Disney Co. reporting a 2 percent reduction in overall Disney+ subscribers, with membership figures dropping from 161.8 million to 157.8 million by the end of the quarter.
Disney+Hotstar’s Subscriber Decline and Reasons
The majority of the subscriber losses can be attributed to Disney+ Hotstar in India, which experienced an 8 percent decline in membership during the quarter ending on April 1.
From December to April, the service witnessed a loss of 4.6 million members, resulting in a total subscriber base of 52.9 million. It is noteworthy that this marks the second consecutive quarter in which the streaming service has faced a decline in subscribers.
This decrease in subscribers correlates with the absence of two major offerings on the platform, namely the Indian Premier League (IPL) and HBO content. Last year in June, Disney+ Hotstar lost the broadcasting rights for the IPL to Viacom18, a company owned by Reliance Industries.
Analysts had previously estimated that losing these rights could lead to a subscriber loss ranging from 15 to 25 million. Additionally, the platform recently terminated its partnership with HBO, depriving it of popular shows like Succession, Game of Thrones, and Westworld.
The Impact of Competitors and Rising Competition
The decline in Disney+ Hotstar subscribers has coincided with the emergence of JioCinema, a streaming platform owned by Reliance Industries. JioCinema has gained substantial traction, with over 500 million viewers, approaching the monthly viewership levels of YouTube. During the first weekend of the T20 league, JioCinema witnessed over 50 million downloads.
JioCinema has also secured a content deal with HBO and has launched a diverse range of original content in regional languages, including Marathi, Bengali, Gujarati, and Bhojpuri.
Moreover, Reliance Industries’ content arm, Jio Studios, has unveiled an impressive lineup of 100 new films and TV shows, featuring notable projects such as “Dunki,” starring Shah Rukh Khan, and “The Storyteller,” starring Adil Hussain. This, coupled with various web originals and mini-series, further enhances JioCinema’s appeal.
With JioCinema’s rising popularity and the intense competition within the OTT space, Disney+ Hotstar may continue to witness a decline in its subscriber base. Other competitors are gaining momentum, posing a significant challenge to the platform’s market position.
