Disney+ reported 219.6 million subscriptions overall in Q3 2023, with 105.7 million of those being core experience customers.
The newest premium streaming service, Disney+, is attempting to prevent password sharing among its subscribers. The firm is ‘actively studying’ ways to regulate account sharing, according to Disney CEO Bob Iger, who made the assertion during the company’s Q3 2023 earnings call. He said that new policies will likely be implemented in 2024. The executive avoided giving a specific figure but said that a “significant” number of users have been exchanging passwords with friends and family. However, his main concern is how many of these users will become new customers, which would increase Disney+’s revenue.
By excluding further users from the app, Netflix was the first to take action against password sharing, and as a result, the platform gained roughly 6 million new members in July. Iger thinks that the restriction on password sharing will undoubtedly result in “some” additional subscribers, and that Disney itself will benefit from it the next year. However, there is a chance that the project won’t be finished by 2024 because I anticipate there will be a lot more testing as the team continues to look for better ways for paying subscribers to share their accounts. Later this year, Disney will start adding new terms to its subscriber agreements, calling it a “priority.”
Given that Disney+ Hotstar, the company’s brand in India and other South Asian nations, just lost an astounding 12.5 million members between April and June, falling from 52.9 million to 40.4 million subscribers, it makes sense for Disney to choose this course of action. The platform lost the exclusive right to live broadcast the IPL (Indian Premier League) to Viacom18 in a $2.6 billion (about Rs. 21,497 crore) deal that is valid through 2027, therefore the decline was predicted.
Although it wasn’t stated specifically, another motivating factor might have been the March 31 withdrawal of all HBO material from Disney+ Hotstar, which took away a ton of high-caliber programs like The Last of Us, Succession, Euphoria, and more. Most online subscribers at the time, including myself, questioned whether keeping their subscriptions was still worthwhile. Even that library is now under Viacom18’s control and accessible for streaming through JioCinema.
Even if the subscriber figure appears to be low, we must keep in mind that Disney+ Hotstar subscriptions are significantly less expensive than those offered internationally. For instance, Hotstar only earns $0.59 (about Rs. 49) each month in core average income per user compared to Disney+’s $6.58 (roughly Rs. 544) monthly. For comparison, the overall number of subscribers to the basic Disney+ service (international) is 105.7 million. When combined with Hotstar, ESPN+, and Hulu, this number rises to 219.6 million worldwide. Following the password-sharing ban, major rival Netflix reported 238.39 million customers.
In India, a Disney+ Hotstar Super subscription costs Rs. 899 per year and includes 1080p content. There are no advertising and support for streaming in Ultra-HD resolution with the Premium membership, which costs Rs. 1,499. A mobile subscription to Disney+ Hotstar is also available for Rs. 499 per year, however it only grants access to one mobile device.
