Disney+ Hotstar has been the home of HBO content ever since the two companies signed an exclusive pact in 2015. As of December 2022, the platform had 57.5 million paid subscribers.
In the October-December quarter, the platform had lost 3.8 million subscribers after losing IPL rights and the non-renewal of content deal with telecom giant Reliance Jio.
“Starting March 31, HBO content will be unavailable on Disney+ Hotstar. You can continue enjoying Disney+Hotstar’s vast library of content spanning over 100,000 hours of TV shows and movies in 10 languages and coverage of major global sporting events,” the platform said in a message on its official social media handle.
Experts say that Disney+ Hotstar will find it tough to add new users in the coming quarters. “The absence of IPL, the termination of its partnership with Jio, constrained entertainment budgets, and the recent discontinuation of HBO content on the platform – all of these factors will significantly diminish the value proposition for subscribers, a considerable number of whom are slated for renewal in the upcoming months,” said Mihir Shah, VP, Media Partners Asia.
He added that the platform might lose a large number of subscribers by the end of 2023, notwithstanding the presence of the ICC Cricket World Cup later in the year.
“Despite some promising content lined up for the second half of the year, such as the Asia Cup and the ICC fifty-over World Cup, Disney+ Hotstar is currently facing a slippery slope, with the potential loss of close to 15 million subscribers by the end of 2023,” he said.
Elara Capital, research analyst (media, consumer discretionary & internet), Karan Taurani believes that the loss of IPL and HBO content will make it challenging for the platform to retain subscribers.
“We expect the negative impact of IPL loss on the subscriber base to be in the 25-30% on a gross basis and the net impact to be 15-20% in case they added up subscribers because of other content,” Taurani said.
