Disney (DIS) to Close Hotstar US by Late 2022: Streaming Bundle Shift at $13.99/month
Disney is set to discontinue Hotstar's U.S. streaming service by late 2022, transitioning its South Asian content to ESPN Plus and Hulu to enhance its streaming bundle.
Disney (DIS) will phase out Hotstar's U.S. operations by late 2022, redistributing its popular South Asian sports and entertainment content to ESPN Plus and Hulu. This strategic move aims to consolidate Disney's streaming offerings and attract a broader subscriber base.
Currently, Hotstar serves the South Asian diaspora in the U.S. with access priced at $49.99 annually. Post-closure, existing Hotstar subscribers can continue enjoying content until their subscription expires, after which they can migrate to Disney's streaming bundle—comprising Disney Plus, ESPN Plus, and Hulu—available for $13.99 per month.
Highlights:
- Hotstar's U.S. service will end by late 2022.
- Hotstar content transitions to ESPN Plus and Hulu starting September 1.
- The integration aims to boost Disney's streaming bundle subscriptions and streamline operations.
Disney emphasizes that moving Hotstar's premium South Asian content to ESPN Plus and Hulu will expand its reach to wider audiences and enrich the Disney streaming ecosystem. Though subscriber numbers for Hotstar in the U.S. remain undisclosed, the shift reflects Disney's focus on maximizing revenue and engagement.
Background and Impact
Originally launched in 2015 under 21st Century Fox and later acquired by Disney in 2019, Hotstar has been a key player in delivering South Asian content globally. While Hotstar significantly contributed to Disney's streaming subscriber growth—accounting for 40% of new additions recently—it also lowered Disney's average revenue per user (ARPU) due to lower subscription fees in Asian markets.
By integrating Hotstar content into ESPN Plus and Hulu, Disney expects to diversify content offerings, especially with Bollywood and cricket programming, enhancing competitiveness against streaming giants like Netflix and Amazon Prime Video.
ESPN Plus, with 15 million subscribers, and Hulu, boasting 42.8 million subscribers, stand to benefit from Hotstar's content, potentially driving subscriber growth and engagement, particularly among sports fans attracted to cricket events like the Indian Premier League (IPL).
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