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Bob Iger said Wednesday that Disney “would like to stay” in India and is considering its options in the world’s most populous country even as its crown jewel streamer Hotstar struggles to contain subscribers loss.
Hotstar lost 2.8 million subscribers in the quarter ending September, widening its overall loss to about 23 million in a year. Hotstar now has 37.6 million subscribers.
The glimmer of hope for Disney is that in the next quarter the company is likely to report a jump in the subscribers count – and potentially report a new India partner.
Hotstar has regained many subscribers and attracted tens of millions of non-paying users back to the platform as they follow the ongoing ICC Cricket World Cup. The company is also inching closer to signing a deal with Reliance to sell the India business, according to Bloomberg.
Disney’s bigger business in India is the portfolio of dozens of cable TV channels it owns in the country. “Our linear business actually does quite well, it’s making money,” said Iger, who returned to Disney as its chief executive late last year, on the earnings call.
“But we know that other parts of that business are challenged for us and for others. And we are looking, I’ll call it expansively,” he added.
Reliance-backed Viacom18 spending more than $3 billion on cricket rights for a local, but very popular, cricket tournament has disrupted the Indian on-demand streaming market.
India has emerged as a key market for global technology and entertainment giants in the past decade. But despite its ability to attract a large user base for online services, the country sees a relatively small fraction of these users converting to paying customers.
“A few years ago, when we asked the International head of a large TV Network business about the company’s performance in India, the executive let out a long sigh and said that the Indian business somehow finds a way to break his heart every year,” MoffettNathanson wrote in a report.
“We have also learned this first-hand during our time covering the many iterations of Fox/News Corp (FOXA, OP), which owned Star TV India. Despite promises of reaching $1 billion in EBITDA by 2020, the division always fell woefully short due to the constant need to re-invest in key cricket rights or mobile platform development.”
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