hotstar: Disney+ Hotstar’s FY22 net loss narrows to Rs 343.16 crore


Novi Digital Entertainment, the company that houses streaming platform Disney+ Hotstar, has narrowed its net loss for FY22 by 43% to Rs 343.16 crore from Rs 600.77 crore compared to the previous fiscal.

The Star India-controlled company’s revenue from operations for the fiscal year under review soared 93% to Rs 3,220.41 crore from Rs 1,670.63 crore a year ago, showed financial data sourced by Tofler.

The revenue growth has happened on the back of big-ticket properties like the Indian Premier League (IPL) and the ICC T20 World Cup 2021.

Advertisement revenue more-than-doubled to Rs 1684.31 crore from Rs 829.74 crore.

Subscription revenue jumped 65% to Rs 1373.61 crore from Rs 830.96 crore.

And revenue from licensing of content rights zoomed over 16 times to Rs 162.49 crore from Rs 9.93 crore.

According to an executive with direct knowledge of the matter, the platform earns almost two-thirds of its revenue from live sports. The Indian Premier League (IPL) was the biggest revenue driver, both from an advertising and subscription standpoint.
“Disney+ Hotstar ad revenue from IPL is at least Rs 1000 crore+. The IPL is also a big driver of subscriber addition for the platform,” the source added.

An email seeking comment sent to Disney Star remained unanswered till press time.

Disney Star was the sole owner of both TV and digital rights for the IPL until the 2022 season.

However, the IPL will be streamed on Viacom18’s Jio Cinema platform from next season. Star Sports will continue to be the official broadcaster for the property.

Novi’s expenses surged 66% to Rs 3,822.11 crore from Rs 2,304.8 crore. Advertising and promotional expenses were up 47% to Rs 704.46 crore from Rs 479.63 crore.

The company’s license fees surged 84% to Rs 1304.60 crore from Rs 708.61 crore. Rights and programme costs jumped 98% to Rs 785.80 crore from Rs 397.64 crore. Technical costs jumped 45% to Rs 392.84 crore from Rs 270.17 crore.

In its Q4 earnings report ending October 1, Walt Disney disclosed that Disney+ Hotstar’s paid subscribers have jumped 42% to 61.3 million from 43.3 million in the corresponding quarter of the previous fiscal. Disney+ Hotstar’s average monthly revenue per paid subscriber had declined 9% to $0.58 from $0.64 in the year-ago period.

Following the loss of IPL digital rights, Walt Disney lowered the paid subscriber guidance for Disney+ Hotstar to 80 million for fiscal 2024.

In December 2020, Walt Disney had guided that Disney+ will hit 230-260 million paid subscribers by 2024 with Disney+ Hotstar expected to contribute 30-40% of that base.

Disney+ Hotstar currently offers more than 100,000 hours of content spanning TV shows, Disney+ originals, Hotstar Specials, movies in eight languages, and sports.

The Disney+ Hotstar app has been downloaded by more than 500 million users, making it one of the most downloaded apps in India. Furthermore, between 2021 and 2022, Disney+ Hotstar had up to 221 million monthly active users.



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