In a dramatic turn of events, JioCinema, an emerging streaming app, has swiftly risen in popularity, attracting a staggering 10 million subscribers in the first quarter of 2023. The app’s free access to the highly anticipated Indian Premier League (IPL) has played a pivotal role in its success, luring a massive user base away from the once-dominant Disney+ Hotstar. The repercussions have been substantial, with Disney+ Hotstar witnessing a rapid decline in its subscriber count across Asia. Within a mere three months, the streaming giant suffered a staggering loss of over 4 million subscribers. Since October 2022, the platform has shed more than 8.4 million followers, predominantly due to the soaring popularity of JioCinema.
JioCinema’s remarkable growth has been nothing short of remarkable. During the first quarter of 2023 alone, the app managed to amass over 10 million new subscribers, while Disney+ Hotstar experienced a disheartening loss of over 8 million subscribers, as reported in the company’s earnings statement. The earnings report for the first quarter further revealed a decline of 3.8 million paid subscribers for Disney+, bringing their total count to 57.5 million. This downward trend persisted over the next three months, resulting in an additional loss of 4 million subscribers, ultimately leading to a substantial decline of 8.4 million paid subscribers in recent months. Consequently, as of April 1, 2023, Disney+ Hotstar now boasts 52.9 million paid subscribers.
Furthermore, the average monthly revenue per paid subscriber for Disney+ Hotstar in Q2 plummeted by 20 percent, dropping from $0.74 to $0.59.JioCinema owes its triumph to several key factors. First and foremost, the app provides free access to Jio subscribers, granting it a clear advantage over Disney+ Hotstar, which charges a fee for its services. This enables JioCinema users to stream the IPL at no additional cost, while on Disney+ Hotstar, only paid subscribers could access the tournament. The alluring proposition of free IPL streaming has undeniably propelled JioCinema to the forefront, leaving Disney+ Hotstar grappling with the consequences of its declining subscriber base.