An Empirical Analysis of Disney+ Hotstar's Market-Specific Strategies Across Countries, with a Focus on India

By - :
Ekansh Agarwal (J001)
Akshata Shrivastava (N284)
Aum Sampat (I043)
Ananaya Sampat (K040)
Aadarsh Sharma (K048)

1. An Empirical Analysis of Disney+ Hotstar's Market-Specific Strategies Across Countries, with a Focus on India B y - : Ekansh Agarwal (J001) Akshata Shrivastava (N284) Aum Sampat (I043) Ananaya Sampat (K040) Aadarsh Sharma (K048)

2. Table of Contents 01 Rise of SVOD in Indian Market 02 Disney+ Hotstar in india 03 Disney+ Hotstar Financial Analysis 04 How IPL has benefited Disney+ Hotstar 05 Conclusion

3. Rise of SVOD in the Indian Market

4. Mission: “Making entertainment accessible and delightful to all people through seamless and intuitive technology and an experience that expands interests and enables deeper connections” Values of the company: i . We are audacious in vision and action ii. We encourage honesty and open dialogue iii. We respect everyone and every point of view iv. We make objective and data-driven decisions v. We believe trust and accountability go hand-in-hand vi. We invest in each other's growth vii. We bring our A-game. And nothing else viii. We take charge and get it done ix. We are customer-obsessed

5. Operations of Disney+ Hotstar in India Disney+ Hotstar allows live streaming of sports channels along with major sports events. All kinds of TV series, movies, and episodes are available. Separate collection of Disney stuff just for children. The platform offers multiple device viewing options. Available at a cheaper subscription rate with loads of options available. Disney originals and Hotstar specials are also available to watch anytime. The website has a user-friendly design. In terms of searching for videos, the platforms use minimal navigation friction so that desired videos are found easily. 60% of the traffic towards the website of Disney+ Hotstar is referred by YouTube. WhatsApp and Facebook refer to around 8.80% and 7.11% of the traffic towards the website respectively. Twitter is contributing around 4.74% in referrals and Instagram has 2.64% of the traffic sent toward the website. While other social media applications with a nominal percentage include around 6.11% share. The platform has 79.64% of the direct traffic. While traffic sent by various referrals is around 0.24%. Search traffic is 19.42% while social media traffic sent towards the Disney+ Hotstar website is 0.52%. Mail traffic and display traffic are around 0.11% and 0.07% respectively. According to the Disney+ Hotstar statistics, the official website has 97.28% of the organic traffic and 2.72% of the paid traffic. Considering the general websites, other online streaming websites and online TV refers to Disney+ Hotstar for 27.72% being the highest. Overall social media networks from around the globe are contributing around 22.60%. Financial websites and banking, credit, and lending websites resulted in 18.38 and 8.06% respectively. Sports betting websites are also contributing by 7.63%. In the month of October 2022, the official website had around 213.8 million total visits, which were 215.2 million visits in the month of September 2022. The rate of visitors has decreased by 0.6%. In the month of August 2022, there were only 191.6 million overall visitors to the website. VRIN Analysis

6. Operations of Disney+ Hotstar

7. Disney+ Hotstar current financial statistics Disney+ Hotstar has around  87 million subscribers  from around the world and by the year-end of 2022, the number is supposed to cross  300 million. According to the Disney + Hotstar statistics, in the first, second, and third quarters of 2022, Disney+ earned around  $4.41, $4.35, and $4.35 respectively. till today the platform has gained around  583.8 million  subscribers in total all the quarters. The platform has around  7,000 TV episodes  and  500 movies  in the library. The platform has  42%  of the paid subscribers. The official website has  97.28%  of the organic traffic and  2.72%  of the paid traffic. 60%  of the traffic towards the website of Disney+ Hotstar is referred by YouTube. (source: Semrush.com) SWOT Analysis

8. PESTEL Analysis Political Factors: Disney+ Hotstar operates within various geopolitical environments, each subject to distinct regulatory frameworks governing media and entertainment industries. Changes in government policies related to content censorship, licensing agreements, or taxation can significantly impact the platform's operations and financial performance . Economic Factors: The economic landscape in which Disney+ Hotstar operates greatly influences its subscription rates and advertising revenues. Factors such as GDP growth, inflation rates, and consumer spending patterns directly affect the platform's profitability. Economic downturns may lead to reduced consumer discretionary spending on entertainment services, impacting Disney+ Hotstar's revenue streams . Social Factors: Demographic shifts, including changes in population dynamics, age distribution, and cultural preferences, play a pivotal role in shaping consumer demand for Disney+ Hotstar's content offerings. Understanding evolving societal trends enables the platform to tailor its content to meet the diverse needs of its target audience. Additionally, shifts in consumer lifestyles, such as increasing mobile usage and binge-watching habits, influence content consumption patterns and platform accessibility .

9. PESTEL Analysis Technological Factors: Technological advancements, such as innovations in streaming technology, mobile devices, and smart TVs, present both opportunities and challenges for Disney+ Hotstar . Embracing these advancements allows the platform to enhance user experiences and expand its reach to new audiences. However, the proliferation of digital piracy poses a threat to Disney+ Hotstar's revenue streams, necessitating robust anti-piracy measures to safeguard its content . Environmental Factors: Growing concerns about environmental sustainability prompt consumers to favor brands that demonstrate eco-friendly practices. Disney+ Hotstar may need to adopt sustainable initiatives within its operations to align with evolving consumer expectations and regulatory requirements . Legal Factors: Compliance with intellectual property rights and data privacy regulations is paramount for Disney+ Hotstar to safeguard its content and user data. Strict enforcement of copyright laws and anti-piracy measures is essential to protect the platform's intellectual property. Additionally, adherence to data privacy regulations, such as GDPR and CCPA, is necessary to ensure the protection of user data and maintain consumer trust. Violations of these legal requirements can result in significant financial penalties and reputational damage for Disney+ Hotstar .

10. Porter 5 Forces of Disney+ Hotstar Threat of New Entrants: The potential for new entrants to disrupt the digital streaming market, particularly in the OTT segment, is perceived to be moderate. Although technological advancements have diminished entry barriers, significant capital investments are requisite for content procurement, platform development, and promotional endeavors . Established entities like Disney+ Hotstar capitalize on economies of scale, brand equity, and exclusive content portfolios, rendering entry difficult for newcomers . Bargaining Power of Suppliers: Suppliers within the digital streaming industry, encompassing content creators, production studios, and sports organizations, exert substantial influence. The availability and pricing of premium content, such as movies, television series, and live sporting events, wield significant sway over the value proposition of streaming platforms like Disney+ Hotstar . Suppliers may exploit their content rights to negotiate favorable licensing agreements or explore alternative distribution channels, potentially impacting the platform's content diversity and market competitiveness . Bargaining Power of Buyers: The bargaining power of buyers, inclusive of subscribers and advertisers, fluctuates within the digital streaming realm. While individual subscribers possess relatively limited bargaining power owing to minimal switching costs and a plethora of alternative platforms, advertisers wield considerable influence, particularly in platforms heavily reliant on ad-generated revenue. Entities like Disney+ Hotstar must continually enhance their content repertoire, user experience, and advertising capabilities to retain subscribers and entice advertisers in a fiercely competitive market milieu .

11. Porter 5 Forces of Disney+ Hotstar Threat of Substitutes: The threat of substitutes in the digital streaming domain is assessed to be moderate, with various alternative entertainment avenues available to consumers. Conventional television, DVD rentals, video gaming, and alternative streaming platforms serve as potential substitutes to OTT services such as Disney+ Hotstar . Nonetheless, the convenience, affordability, and extensive content libraries offered by OTT platforms mitigate the allure of substitutes, particularly among tech-savvy and mobile-oriented consumers . Intensity of Competitive Rivalry: Competitive rivalry within the digital streaming sector, particularly in the OTT sphere, is deemed intense. Established incumbents like Netflix, Amazon Prime Video, and Hulu, alongside regional competitors, engage in fervent competition for market dominance through aggressive content acquisitions, innovative features, and strategic pricing maneuvers . Furthermore , the entrance of media conglomerates like Disney into the streaming arena heightens competitive pressures, as platforms vie for exclusive content rights, subscriber acquisition, and advertising revenue. Disney+ Hotstar faces perpetual imperatives to differentiate its offerings, augment user engagement, and uphold competitive pricing to flourish amidst this dynamic landscape. .

12. Value Chain Analysis of Disney+ Hotstar Value Chain Activity Description Inbound Logistics - Content Acquisition: Procurement of diverse content (movies, TV shows, sports events, originals) through licensing agreements. - Digital Rights Management: Management of digital rights for acquired content to ensure compliance and exclusive distribution. Operations - Content Curation: Organizing and curating content library based on genres, languages, and viewer preferences. - Video Streaming Infrastructure: Investment in robust streaming technology for seamless playback and optimization of video quality. Outbound Logistics - Content Delivery: Distribution of streaming content via website, mobile apps, and supported devices using content delivery networks (CDNs) for efficient delivery.

13. Value Chain Analysis of Disney+ Hotstar Marketing and Sales - Subscriber Acquisition: Employing various marketing channels and campaigns to attract new subscribers. - Subscription Plans: Offering tiered subscription plans with different features and pricing options to cater to diverse user preferences. Service - Content Personalization: Delivering personalized recommendations and suggestions based on user viewing history and preferences. - Customer Support: Providing assistance through online chat, email, and phone support for user queries and technical issues. Technology Development - Platform Innovation: Investing in R&D to introduce new features and enhance user interface and functionality. - Data Analytics: Leveraging data analytics and machine learning to analyze user behavior and optimize content delivery.

14. Value Chain Analysis of Disney+ Hotstar Human Resource Management - Talent Acquisition: Recruitment of skilled professionals in areas such as content acquisition, technology development, and customer service. - Training and Development: Investment in employee training programs to enhance skills and capabilities. Firm Infrastructure - Governance and Compliance: Maintenance of robust governance and compliance frameworks for legal and regulatory adherence. - Strategic Partnerships: Formation of alliances and partnerships with content providers and technology vendors to expand content library and enhance platform capabilities.

15. How IPL rights has benefited Disney+ Hotstar ? IPL rights fueled Hotstar's initial growth, propelling it to become the dominant Indian OTT platform with over half of all paid subscribers [Source: Forbes India]. The massive viewership of IPL contributed significantly to Disney+'s global subscriber base, making Hotstar a key player in Disney's expansion strategy [Source: Forbes India]. IPL established Hotstar as a premier destination for live sports, attracting a wider audience and encouraging subscriptions for other content [Source: Inc42]. The IPL association significantly boosted Hotstar's brand recognition in India, making it synonymous with high-quality sports streaming [Source: Various news articles]. Hotstar leveraged the IPL to develop innovative features like interactive polls, live audio, and exclusive highlights, enhancing the user experience [Source: Inc42].

16. Thank you