Disney + Hotstar sheds subscribers for second straight quarter

Subscribers to Disney + Hotstar fell for the second straight quarter, the company said on Wednesday, though it stemmed financial losses as it competes with Netflix for viewers.

Analysts had foreseen an increase in subscribers for the period, but a hike in prices sent customers turning away from the platform that streams Marvel, Star Wars and Disney content across the globe.

Total subscribers to Disney+ Hotstar fell to 157.8 million, the Burbank, California-based group said, with the company losing $659 million in its streaming unit, though this was not as bad as expected.

The contraction of the Disney+ Hotstar subscriber portfolio was mainly due to an 8 percent drop in India, where the Hotstar version of the service accounts for almost a third of the global total. But the entertainment giant also saw a slight decline in North America.

"We were pleasantly surprised that the loss of subs due to what was a substantial increase in pricing... was relatively small," CEO Bob Iger told analysts after the company posted its earnings.

Disney said that despite the fall in subscribers, revenue per customer had increased and added it believed the subscribers would again pick up, especially with the rise of cheaper ad-based service.