Mickey Mouse Loses Magic In India As Disney+ Hotstar Suffers Major Subscriber Drop
Portfolio Pulse from Utkarsh Roshan
The Walt Disney Company (NYSE:DIS) reported a significant loss of 2.3 million subscribers for Disney+ Hotstar in India during its second-quarter earnings. The Average Monthly Revenue Per Paid Subscriber also fell by 45% to $0.70. Star India, another Disney venture, saw a 17% decline in quarterly revenue to $105 million, though its operating losses decreased to $27 million from $99 million the previous year. Disney took over $2 billion in charges for goodwill impairments related to Star India and other Indian ventures, following a joint venture agreement with Reliance Industries.
May 08, 2024 | 9:44 am
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Disney reported a significant subscriber loss in India for Disney+ Hotstar, a decrease in Average Monthly Revenue Per Paid Subscriber, and a revenue decline for Star India, alongside over $2 billion in goodwill impairments.
The loss of subscribers and decrease in revenue per user for Disney+ Hotstar, combined with the revenue decline and goodwill impairments for Star India, are likely to negatively impact investor sentiment towards Disney's stock in the short term. The significant financial adjustments and the operational challenges in a major market like India could be seen as red flags, potentially leading to a decrease in stock price.
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IMPORTANCE 90
RELEVANCE 100