The popular streaming platform Disney + continues its growth in the first quarter of 2021. The company recently announced that its worldwide subscriber base has grown to 94.9 million subscribers. This is an impressive achievement as Disney + gained more than 21 million new subscribers in the quarter ended January 2, 2021. The streaming platform had nearly 74 million subscribers in the previous quarter.
What is Disney + Hotstar’s share of this huge subscriber base? Disney SVP and CFO Christine McCarthy revealed that during the earnings call Disney + Hotstar made up about 30% of the global subscriber baseIt simply means that the streaming giant has nearly 28.5 million subscribers, including users in India, Indonesia and Singapore. The platform contributed 25% to the global subscriber base last quarter.
While Disney + has amassed a huge user base in just 14 months, it comes at a cost. The average revenue per user (ARPU) decreased by 28% in this quarter. The company earned an average of $ 4.03 per subscriber worldwide, compared to $ 5.56 in the same quarter last year. It had made $ 4.52 from every subscriber in the previous quarter.
The huge drop in ARPU can be due to the lower subscription costs for Disney + Hotstar in India, Indonesia and Singapore. Average revenue per user increases to $ 5.37 when you exclude Disney + Hotstar. The Indian streaming giant offers users access to certain content with ads in addition to the subscription model.
This could be a major concern for Disney +, but it doesn’t want to miss out on existing subscribers by suddenly increasing Hotstar costs. Instead, Disney + is going to charge $ 80 instead of $ 70 for the annual subscription in the US. The company must keep prices competitive to beat rivals Netflix, Amazon Prime Video, and others in India.
In addition, the appeal of TV shows and movies in the MCU universe could lead to more users yielding money to enjoy the content. Disney + Hotstar also has IPL and other sporting events to its name. Would you be willing to pay a higher fee for a Disney + Hotstar subscription? Plans currently start at Rs. 299 per month in India.