After India biz boom, Disney+ eyes markets with low spending power

THE COMPANY’S PREMIUM PLAN IN INDIA COSTS $20, COMPARED TO $70 PAID BY US-BASED CUSTOMERS

The growth of Walt Disney Co.’ s streaming service in India and Indonesia has been staggering, with the countries now accounting for more than a quarter of its 73.7 million customers globally.

What’s less staggering is the price most of the subscribers pay: Even the premium plan is just $20 a year. That’s a fraction of the $70 that US customers shell out and illustrates the challenge the company faces as it takes its streaming platform to more countries.

The growth of Disney+, which launched a year ago, has far exceeded the expectations of both Wall Street and the company itself. It was a bright spot in Disney’s latest quarterly results. But keeping up its pace will mean tapping markets with less spending power. “If you get enough sheer volume, you can make it work even at a relatively low price per subscriber,” said David Heger, an analyst at Edward Jones.

The company serves India and Indonesia with a product called Disney+ Hotstar, a rebranded platform born out of a business acquired from Fox last year. Those two developing countries now represent 18.4 million Disney+ subscribers.

Hotstar was rechristened with the Disney+ name on April 3 in India. The product launched in Indonesia in September. Since the streaming platform had 33.5 million subscribers globally at the end of March, that means the two countries accounted for almost half of new customers over the past six months.

India, with its massive population, has the potential to become the biggest market for Disney+, Heger said. “When you look at a country with 1.3 billion people, your potential is significant,” he said. However, in last year’s third quarter, Disney’s Indian media business posted a $60 million loss due to rising costs for cricket.