Disney+ Hotstar, the video streaming service owned by the Walt Disney Company in India and a few other Asian markets, reported an increase of 2% sequentially in its paid subscribers to 38.3 million for the October-December period, the first since losing the digital streaming rights of the Indian Premier League (IPL) last year.
The company, which follows an October-September accounting year, reported its quarterly numbers on Thursday.
India was the key contributor to the Hotstar subscriber growth, industry experts said, since markets such as Thailand, Malaysia and Indonesia are very small in terms
of viewership.
At a broader level, Disney reported better-than-expected earnings for its fiscal first quarter on Thursday and issued an upbeat profit outlook for the year, citing cost-cutting benefits and the strong performance of its international theme parks when announcing its December quarter numbers.
Earnings rose to $1.22 a share, excluding some items, Disney said in a statement, even as revenue was little changed at $23.5 billion for the December quarter.
The increase in Hotstar subscriber numbers in India also comes as the Reliance-backed Viacom18 and Disney Star look to merge their operations.
Last week, the Wall Street Journal reported that Disney had agreed to sell 60% of its shareholding in Disney Star to Viacom18 and Bodhi Tree Investments, a joint venture between James Murdoch and former top Disney executive Uday Shankar, retaining 40% stake in the merged entity.
In the September quarter, Disney+ Hotstar had seen a 7% sequential decline in subscribers to 37.6 million, which was the fourth straight quarter of decline for the over-the-top (OTT) platform.
The growth in India came even as Disney+ subscribers across other international markets saw a 1% decline to 46.1 million subscribers.
Disney+ Hotstar has been reworking its strategy in India, focusing on general entertainment content, beyond sports broadcasting, sector experts said.
The ARPU (average monthly revenue per user) for Disney+ Hotstar increased to $1.28 from $0.70 in the December quarter due to higher advertising revenue and increases in retail pricing, partially offset by a higher mix of subscribers from lower-priced markets, the company said.
Disney also announced a strategic $1.5 billion investment in Epic Games, signalling a deep dive into the gaming industry.
This collaboration aims to merge Disney’s vast array of brands and franchises with the gaming world, notably through Fortnite, setting the stage for a new era of gaming and entertainment experiences, it said.