Disney is set to redefine the landscape of cricket streaming as it employs a visionary strategy to offer free access to cricket content on smartphones. In a calculated move, Disney aims to amplify its streaming business’s prospects in India by capitalizing on the nation’s unwavering passion for cricket. This strategic decision not only aims to draw in a larger audience but also to drive advertising revenue and offset any adverse effects caused by a reduction in subscribers.
A Game-Changing Offering
To combat competition in a cricket-rich year, Walt Disney is embracing an innovative approach to rejuvenate its streaming business in India. In a pivotal announcement made in June this year, Disney+ Hotstar declared that both the Asia Cup and the ICC Men’s Cricket World Cup tournaments would be accessible for free on their platform for mobile phone users. This strategic pivot serves dual purposes—augmenting advertising income and mitigating any impact caused by subscriber attrition, as reported by Reuters.
Catalyzing Cricket Enthusiasm
The move to provide cricket content free on mobile phones is poised to engage over 450 million users during the 48-day duration of the 50-over World Cup, hosted by India. This figure signifies a remarkable increase from the 300 million viewers who tuned in during the previous World Cup in 2019, as highlighted by a Disney report named “Festival of Cricket 2023.”
Striving for New Records
Disney+ Hotstar has set ambitious goals for the forthcoming World Cup. The company aspires to achieve an unprecedented record of 50 million concurrent viewers, double the figure recorded in 2019. This target stands as a remarkable 56 percent increase from the viewership witnessed during the IPL finals of this year, even surpassing the viewership garnered by Ambani-led JioCinema.
Navigating Subscriber Dynamics
The entertainment giant experienced a decline of 4.6 million paid viewers in the January-March quarter, leading to an 8 percent reduction in its subscriber base to 52.9 million. This reduction is attributed to an exit of subscribers, causing financial pressure. Disney’s initial growth in India was spurred by the Indian Premier League (IPL), and the loss of streaming rights for the tournament proved to be a significant setback.
A Strategic Turn: Leveraging Hybrid Models
Disney has recognized the need for strategic transformation and shifted back to the free-cricket model on mobile phones and tablets. This approach aims to bolster advertising revenue while targeting potential new subscribers for the paid Hotstar TV app. By embracing a “hybrid model,” Disney intends to diversify revenue streams and drive viewer engagement.
Innovative Advertising Initiatives
Disney’s strategy involves innovative advertising initiatives to foster consumer engagement. Interactive ads will connect viewers with brands through WhatsApp chats, enabling direct product purchases. A partnership with Coca-Cola, featured in the Disney report, demonstrates this approach. QR codes on millions of Coca-Cola bottles will offer Hotstar trials, with a hopeful conversion of 80,000 individuals to paid plans.
As Disney redefines its cricket streaming landscape, it’s evident that strategic innovation and a focus on viewer engagement are at the core of their approach. The move to provide free cricket content on smartphones reflects Disney’s commitment to adapt and cater to the evolving preferences of its audience, securing its place in the highly competitive streaming industry.
