Disney+ Hotstar Sheds 12.5 Million Subscribers in Fiscal Q3 Amid Strategy Shift; Streaming Losses Narrow
variety.comCynthia Littleton Business Editor The Walt Disney Co. saw its streaming losses narrow in the second quarter amid an exodus of 12.5 million subscribers from its Disney+ Hotstar streaming platform in India.
For the quarter, Disney exceeded Wall Street’s targets on earnings per share but missed on revenue. The Mouse reported total revenue of $22.3 billion, up 4% from the year-ago quarter, and operating income of $3.6 billion, down 6%.
Disney executives previously warned Wall Street that subscriber losses were coming for the Disney+ Hotstar service amid a strategy shift to move away from low-margin subscribers.
The loss of key sports rights in the region also set the stage for significant churn on the Hotstar front. Losses in the direct-to-consumer unit were cut in half compared to the same period last year.
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