The third quarter of Disney’s video streaming service Disney+ Hotstar, which concluded on July 1, 2023, saw a loss of 12.5 million paid subscribers, the worst single decline in subscribers since the media and entertainment conglomerate began revealing the programme’s paid member base in April 2020.
The number of paid subscribers to Disney+ Hotstar fell to 40.4 million during the quarter, a 24 percent decrease from the 52.9 million paid subscribers in the previous quarter. The Disney-owned video streaming service has seen a fall in subscribers for three straight quarters. In the quarter ending October 2022 (Q4FY22), Disney+ Hotstar reported having 61.3 million subscribers at its peak.
After losing the vital IPL cricket tournament’s streaming rights last year, Disney had already issued a warning that the number of subscribers to the video streaming service will decline. The competition significantly contributed to the increase of Disney+ Hotstar subscribers.
Viacom18 recently streamed the whole IPL tournament for free on JioCinema after securing the streaming rights for the 2023–2027 season.
Later, Viacom18 also reached an agreement with Warner Bros. Discovery to make JioCinema the new home for HBO, Max Original, and Warner Bros. content in the nation. Previously, Disney had the rights to this material.
Disney’s interim CFO Kevin Lansberry explained the subscriber decline on the company’s earnings conference call by changing the product from one that was focused on the IPL to one that was more balanced with other sports and entertainment offerings.
