Disney seeks to strengthen its position in India despite Hotstar challenges

Disney’s CEO Bob Iger has confirmed that the company is committed to the Indian market despite challenges faced by Hotstar, its streaming service. In an earnings call, Iger said that Disney “would like to stay” in India and is actively exploring options.

While Hotstar lost 28 lakh subscribers in the last quarter, bringing the total loss to about 2.3 crore in a year, Disney+ globally added nearly 70 lakh subscribers, surpassing 15 crore, including Hotstar, reported Hindustan Times.

Despite challenges in the streaming sector, Disney’s cable TV business in India remains profitable. A glimmer of hope for Disney lies in the expectation of a surge in Hotstar’s subscriber count in the next quarter, currently standing at 3.76 crore subscribers.

Hotstar has seen a rebound, attracting back numerous subscribers and non-paying users, during the ongoing ICC Cricket World Cup. It has been offering free streaming on mobile devices. There are also indications of a potential deal with Reliance to sell the India business, aiming to mitigate losses. Iger revealed plans to cut an additional $2 billion in costs to narrow streaming losses, projecting streaming profitability in about a year.

Disney’s streaming service, Hotstar, has been facing stiff competition from other streaming services in India. The Indian streaming market is dominated by Netflix, Amazon Prime Video, and local players such as Zee5, Voot, and Sony Liv. Hotstar’s market share has been declining, and it has been losing subscribers to its competitors.

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