HOW DOES DISNEY+ HOTSTAR MAKE MONEY?
Disney+ Hotstar is one of the most popular media streaming platforms in the world. Disney+ Hotstaris based in the USA and India and was founded in 2012.
Disney+ Hotstar is one of the richest organizations in the world and owns assets worth $10 Billion.
It also generates a revenue of $20 Billion and earns around 2 Billion Dollars annually.
But ever wondered how Disney+ Hotstar earns this lump sum? Let’s talk about the Business Model of Disney+ Hotstar and how Disney+ Hotstar invests and generates income.
Subscriptions are the main source of revenue for Disney+ Hotstar. It has over 1 Million subscribers across 190 Countries. Disney+ Hotstar has over 125 Million Hours TV Shows and Movies in 75 Languages. Disney+ Hotstar generates around 70 Billion Dollars from its subscriptions. Disney+ Hotstar offers 3 types of subscriptions: Basic, Standard, and High Definition, and their cost vary.
Disney+ Hotstar has to acquire content from various production houses to stream its content on its platform legally. The licensing cost differs for different content. The production houses license their content on their discretion. However, Disney+ Hotstar earns an edge over its competitors for high-class quality licensed content.
- Production Cost:
Hotstar Originals was formed by Disney+ Hotstar in 2013. The main motive of Disney+ Hotstar behind this step was to cut the licensing cost. Hotstar produces its own exclusive content under the label of Hotstar Originals. However, there is a huge expenditure incurred on the Production of TV Series under Hotstar Originals.
- Human Resource:
In order to maintain the goodwill and operate the platform, Disney+ Hotstar has to hire human resources for the management. This Human Resource also helps in Research and Development. Disney+ Hotstar employs over 5,000 employees across the world.
- Marketing Cost:
Disney+ Hotstar has to bear a heavy expenditure on Marketing. They face cut-throat competition from new streaming platforms like Amazon Prime and Netflix. However, Disney+ Hotstar has managed its marketing department very well and is well known as the most luxurious media streaming platform.
Disney+ Hotstar has to spend on its technology in order for a user-friendly experience for its subscribers. Millions of users stream online at a particular time and the technology has to be really good in order to win the subscriber's mind. Disney+ Hotstar recently launched the Hotstar Party in which multiple users can chat while streaming online.
Disney+ Hotstar is really doing great with the perspective of a business. The net worth of Disney+ Hotstar is worth $114 Billion. The share price of Walt Bros. was also valued at $400/share in early 2020. This makes Disney+ Hotstar the most successful media streaming platform.