Disney+ Hotstar paid subscriber base swells to 58.4 million
The average monthly revenue per paid subscriber increased from $0.78 to $1.20 due to higher per-subscriber advertising revenue, the company said
Disney Star India-owned streaming platform Disney+ Hotstar's paid subscriber base jumped 30 per cent YoY to 58.4 million for the quarter ended 2nd July against 44.9 million in the same quarter last year. On a sequential basis, the paid subscriber base jumped 27.23 per cent from 45.9 million for the quarter that ended 1st January.
The average monthly revenue per paid subscriber for Disney+ Hotstar increased from $0.78 to $1.20 due to higher per-subscriber advertising revenue, Walt Disney said in its Q3 earnings statement
Disney+ paid subscribers from the US and Canada were up 17% to 44.5 million from 37.9 million. The international paid subscriber base (excluding Disney+ Hotstar) grew 48% to 49.2 million from 33.2 million. ESPN+ paid subscriber base rose 53% to 22.8 million from 14.9 million. The total Hulu subscriber base was up by 8% to 46.2 million from 42.8 million.
Total Disney+ paid subscriber base grew by 31% to 152.1 million from 116 million. The average monthly revenue per paid subscriber for domestic Disney+ decreased from $6.62 to $6.27 due to a higher mix of subscribers to multi-product offerings, partially offset by an increase in retail pricing.
Walt Disney has reported that its Direct-to-Consumer revenues for the quarter increased 19% to $5.1 billion and operating loss increased $0.8 billion to $1.1 billion. The increase in operating loss was due to a higher loss at Disney+, lower operating income at Hulu, and, to a lesser extent, a higher loss at ESPN+.
It stated that lower results at Disney+ reflected higher programming and production, technology, and marketing costs, partially offset by increases in subscription revenue and, to a lesser extent, advertising revenue.
It added that the increase in programming and production costs was primarily due to more content provided on the service, including the impact of airing 64 Indian Premier League (IPL) cricket matches in the current quarter compared to 29 matches in the prior-year quarter. Higher subscription revenue was due to subscriber growth and increases in retail pricing, partially offset by an unfavourable foreign exchange impact.
The increase in subscribers as well as in technology and marketing costs reflected growth in existing markets and, to a lesser extent, expansion to new markets. Advertising revenue growth was due to the additional IPL matches in the current quarter.
IPL cricket matches typically occur in our second and third fiscal quarters. The increase in the number of matches in the current quarter was due to a shift in the timing of matches in the prior year from the third quarter to the fourth quarter as a result of COVID-19 and the IPL adding matches to the current season.
“We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings,” said Walt Disney CEO Bob Chapek.
“We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.”
The media conglomerate's Domestic Channels revenues for the quarter increased 2% to $5.7 billion, and operating income increased 15% to $2.1 billion, reflecting higher results in both Cable and Broadcasting.
The increase at Cable was due to growth in advertising revenue and to a lesser extent, a decrease in marketing costs and an increase in affiliate revenue. Advertising revenue growth was due to an increase in rates and higher impressions reflecting higher average viewership.
International Channels revenues for the quarter increased 7% to $1.5 billion and operating income was comparable to the prior-year quarter at $0.2 billion reflecting lower operating income from channels that operated for the entire current and prior-year quarters (ongoing channels), offset by a benefit from channel closures.
Lower results from ongoing channels were primarily due to an increase in sports programming costs, partially offset by advertising revenue growth reflecting higher average viewership. The increases in sports programming costs and advertising revenue were due to the airing of IPL matches.
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