We're going to focus on Hotstar from both entertainment & sports standpoints: Bob Chapek
Disney CEO Bob Chapek had said that the Indian video streaming market is unique as the market dynamics are totally different compared to other markets
Star Disney India-owned streaming platform Disney+ Hotstar is a key piece in The Walt Disney Company's strategy to double down on international markets, Disney CEO Bob Chapek said recently during a session at Credit Suisse 23rd Annual Communications Conference.
Disney, Chapek said, will emphasise more than ever on its general entertainment content, both in the Star, Star+ and Hulu formats. "We're going to really focus in on some local content and really double down there in our international markets. And we've got the machines to do that now. And we're going to focus down on Hotstar, both from an entertainment standpoint and a sports standpoint, given its benefits in those regions. So I think what we've learned is that we're going to continue to do more of what we're doing," he stated.
Chapek had recently said that the Indian video streaming market is unique as the market dynamics are totally different compared to other markets. What makes the Indian market unique is mass-market pricing and mobile-first distribution, he stated.
"Well, we have an unparalleled collection of entertainment and sports in our Hotstar offering, something we're really proud of. But it's a unique market. That's the case around the world, but really is a unique market unique because we have particularly what I'll call mass-market pricing and distribution, but it's a unique market in terms of that distribution because it's really a mobile-first market, which is kind of unusual," Chapek said while speaking at JPMorgan 49th Annual Global Technology, Media and Communications Conference.
Being a low bandwidth market with a preference for local language content, the platforms have to come up with customised offerings. That said, Disney+ Hotstar also offers a large volume of premium content. The Star network creates 17,000 hours of content every year, all of which sits on the Disney+ Hotstar platform.
"They have low bandwidth, and so we have to tailor our offerings to match that low bandwidth, and local languages are particularly important there. And so we have to sort of customise for each of those unique elements, but we think that our premium programming evidenced by the sports I referenced especially things like cricket and that local content, we have, I think 17,000 hours a year of local content that we create for Hotstar. And I think that really drives our local affinity, and we're excited to launch in Malaysia on June 1," Chapek stated.
Disney+ Hotstar had added 6.2 million paid subscribers in Q2 to take its total base to 34.67 paid subscribers. It comprised 1/3rd of Disney+'s 104 million paid subscribers. "We had almost 104 million Disney+ paid subscribers at the end of the second quarter. Between Q1 and Q2, Disney+ Hotstar was the strongest contributor to net subscriber additions, making up approximately one-third of the total Disney+ subscriber base as of the end of the second quarter," The Walt Disney Company Senior Executive Vice President and CFO Christine McCarthy had told analysts during the earnings call.
The average revenue per user (ARPU) at Disney+ Hotstar was down significantly versus the first quarter due to lower advertising revenue as a result of the timing of IPL cricket matches and the impact of Covid-19 in India. "As a reminder, the majority of the prior IPL tournament took place in fiscal Q1, and there were no games in Q2. The current IPL tournament began on April 9 in fiscal Q3 and was suspended last week, given the Covid-19 situation in India," McCarthy had added.
Disney, Chapek said, will emphasise more than ever on its general entertainment content, both in the Star, Star+ and Hulu formats. "We're going to really focus in on some local content and really double down there in our international markets. And we've got the machines to do that now. And we're going to focus down on Hotstar, both from an entertainment standpoint and a sports standpoint, given its benefits in those regions. So I think what we've learned is that we're going to continue to do more of what we're doing," he stated.
Chapek had recently said that the Indian video streaming market is unique as the market dynamics are totally different compared to other markets. What makes the Indian market unique is mass-market pricing and mobile-first distribution, he stated.
"Well, we have an unparalleled collection of entertainment and sports in our Hotstar offering, something we're really proud of. But it's a unique market. That's the case around the world, but really is a unique market unique because we have particularly what I'll call mass-market pricing and distribution, but it's a unique market in terms of that distribution because it's really a mobile-first market, which is kind of unusual," Chapek said while speaking at JPMorgan 49th Annual Global Technology, Media and Communications Conference.
Being a low bandwidth market with a preference for local language content, the platforms have to come up with customised offerings. That said, Disney+ Hotstar also offers a large volume of premium content. The Star network creates 17,000 hours of content every year, all of which sits on the Disney+ Hotstar platform.
"They have low bandwidth, and so we have to tailor our offerings to match that low bandwidth, and local languages are particularly important there. And so we have to sort of customise for each of those unique elements, but we think that our premium programming evidenced by the sports I referenced especially things like cricket and that local content, we have, I think 17,000 hours a year of local content that we create for Hotstar. And I think that really drives our local affinity, and we're excited to launch in Malaysia on June 1," Chapek stated.
Disney+ Hotstar had added 6.2 million paid subscribers in Q2 to take its total base to 34.67 paid subscribers. It comprised 1/3rd of Disney+'s 104 million paid subscribers. "We had almost 104 million Disney+ paid subscribers at the end of the second quarter. Between Q1 and Q2, Disney+ Hotstar was the strongest contributor to net subscriber additions, making up approximately one-third of the total Disney+ subscriber base as of the end of the second quarter," The Walt Disney Company Senior Executive Vice President and CFO Christine McCarthy had told analysts during the earnings call.
The average revenue per user (ARPU) at Disney+ Hotstar was down significantly versus the first quarter due to lower advertising revenue as a result of the timing of IPL cricket matches and the impact of Covid-19 in India. "As a reminder, the majority of the prior IPL tournament took place in fiscal Q1, and there were no games in Q2. The current IPL tournament began on April 9 in fiscal Q3 and was suspended last week, given the Covid-19 situation in India," McCarthy had added.
