India’s top streaming service Disney+ Hotstar has lost 4.6 million subscribers in the fourth quarter of financial year 2023, foreign brokerage CLSA has said in a report. The drop in subscribers comes directly after the OTT platform lost the rights to the Indian Premier League and also saw content from HBO and HBO Max leave the site.
According to the report, Disney+ Hotstar’s subscriber base decline to 52.9 million accompanied by a fall in ARPU (average revenue per user) to Rs 48 led by lower per subscriber advertising revenue. Disney+ Hotstar’s subscriber loss and ARPU drop were due to the loss of Indian Premier League (IPL) digital rights from 2023, CLSA said.
India’s biggest sports content, IPL’s five-year media rights starting 2023 are split between Disney and Viacom 18 owned by Reliance Industries. Disney only has the TV broadcast rights for IPL starting 2023 with the streaming rights going to Viacom 18. This is why the IPL is currently being streamed on Jio Cinema as opposed to Hotstar, which had been its home for several years prior.
In the previous five years, Disney Star was the sole TV and digital rights holder for the IPL. This battle will escalate as each has paid $3 billion for rights and payment jump from 2025. Disney, known for Pixar, Star Wars and Marvel films, said its flagship streaming service lost 4 million subscribers in the first three months of the year, The Guardian reported.
In March 2023, Disney+ Hotstar also saw the exit of all content on the platform from HBO and HBO Max, including some of the most popular TV shows in the world such as House of the Dragon and Succession. These shows will also soon make their way to Jio Cinema, following a deal between Reliance and HBO.
