The Walt Disney Company’s revenue for the second quarter ending April 1, 2023, stood at $21,815 million, marking a 13% increase compared to the $19,249 million generated in the corresponding quarter of the previous year.
However, the company has witnessed a steep decline in the number of subscribers in Q2. Disney+ Hotstar lost 4.6 million subscribers in the second quarter of FY23, leading to the subscriber base falling to 52.9 million on April 1, 2023 from 57.5 million in December 31, 2022.
In the October-December 2022 quarter (Q1 FY23) the subscriber base of Disney+ Hotstar had dropped to 57.5 million from 61.3 million.
Meanwhile, Disney+ Hotstar's average monthly revenue per paid subscriber dropped from $0.74 to $0.59 - due to lower per-subscriber advertising revenue.
This comes months after Disney+ Hotstar lost the digital media rights of the Indian Premier League (IPL). The streaming service provider had lost 3.8 million subscribers in the first quarter of FY23 (October-December 2022).
The IPL digital rights had helped Disney+ Hotstar fetch a leadership position in the Indian OTT market in the last few years. According to a report, it had a 50% market share in the SVOD OTT space as of April 2022.
International Disney+ (excluding Disney+ Hotstar) average monthly revenue per paid subscriber increased from $5.62 to $5.93 due to a favourable foreign exchange impact, a lower mix of wholesale subscribers and an increase in wholesale pricing, the company stated.
"We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success,” said Robert A Iger, Chief Executive Officer, The Walt Disney Company.
"From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations," he added.
Moreover, Disney+ subscribers dropped by 2% to 157.8 million from 161.8 million in Q2 FY23.