Disney+ Hotstar Tailors Offerings to Match Low Bandwidth In India: Disney CEO

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The Walt Disney Company, a diversified international family entertainment and media enterprise, will “focus down on Hotstar, both from an entertainment standpoint and a sports standpoint,” says Bob Chapek, the company’s chief executive officer. Chapek on Monday said in the annual Credit Suisse Communications Conference that the choice made by the company to target sports and entertainment for Hotstar is due to its “benefits in those regions.” The Walt Disney CEO also said that the company is set to focus on “some local content and really double down” in its international markets. In recent months, the Walt Disney Company has been vocal about the significance of local content and sports especially cricket on its platforms.

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Disney+ Hotstar Accounts for Third of Total Disney+ User Base

Christine McCarthy, the chief financial officer at the Walt Disney Company in the second quarter earnings call in early May said the “Disney+ Hotstar was the strongest contributor” to its net user additions. Further, McCarthy said that the Disney+ Hotstar made up “approximately a third of the total Disney+ subscriber base as of the end of the second quarter.”

Crucially, McCarthy said that the average revenue per user (ARPU) at Disney+ Hotstar in the second quarter was “down significantly” due to “lower advertising revenue as a result” of the Indian Premier League (IPL) matches timing.

“The other thing that’s going to happen here is with the absence of the IPL games in India, that will also have an impact on advertising revenue,” McCarthy said in the second quarter earnings call. “So you could see a decrease in the ARPU and the subs in India, if that plays out.”