Disney+ has enjoyed positive optics over the last year as it’s continued to narrow its subscriber gap with Netflix.
However, not all Disney+ subscribers signed up to get Disney content. Roughly 36% of Disney+ subscribers are actually subscribed to Disney+ Hotstar, the company’s Indian streaming service, per Variety.
Disney+ Hotstar…
… is anchored not by Disney classics, but cricket. Specifically, the company holds the streaming rights for the Indian Premier League — the most popular cricket league in India.
But that’s about to change:
- Disney bought the rights to IPL Cricket in 2018 in a five-year agreement worth $2.1B, and the rights expire in 2023
- Viacom18 — a joint venture between Paramount Global, Reliance Industries, and Bodhi Tree Systems — purchased the 2023-27 streaming rights to IPL Cricket for $2.6B
On the bright side…
… Disney+ should see a pop in its average revenue per user (ARPU):
- Disney+ subscribers outside of India pay $6.32-$6.35 per month
- Disney+ Hotstar subscribers in India only pay 76 cents per month
Some analysts predict losing IPL rights could result in 20m-30m churned subscribers for Disney+. With a goal of 230m-260m subscribers by 2024, hopefully that silver lining is enough to keep investors happy.
