Growth strategies for Disney Hotstar

Disney + Hotstar is one of the leading streaming platforms in India, owned by Novi Digital Entertainment Private Limited, which is a joint venture between Disney Star and operated by Disney Media and Entertainment Distribution, both divisions of The Walt Disney Company. It offers a wide range of TV shows and movies in multiple languages, as well as live sports events. The platform offers affordable mobile or TV/laptop subscription plans, as well as the option to consume limited free content.

In this blog post, we will discuss the growth strategy for Disney Hotstar based on the Ansoff Metrics.

Market Penetration Strategies:

• Improving Sales Strategies: Bundle the subscription to make it affordable. Individual part subscriptions are based on the needs of the user.
• Marketing Strategies: Advertising-free content for unsubscribed users, Outdoor campaigns, TV/in-app advertising

Market Development Strategies:

• Expand access to existing products/services: SEO optimization, Geographical Expansion, and Promoting an existing product

Product Development Strategies:

• Special Subscription for Mobile Users: Low-price mobile use-only subscriptions extend the reach and can further be specified based on video quality and data limit.
• Rebuilding a more personalized onboarding experience: The onboarding process can be personalized by the genre and show which users want to watch.

Diversification Strategies:

• Vertical integration: Integration with music platforms such as Ganna, Bookmyshow, and Paytm Movies will allow the cross-sale of upcoming movies and music also users can book and watch live concerts online.
• Horizontal integration: Partner with leading companies like Lionsgate to showcase the world’s television content, Partnering with TVF and other content creators to have exclusive content for Hotstar.

Additional Growth Strategies:

• Personalization: Add the feature of personalization to the app, where users can customize their home screen according to their preferences, such as favorite shows, channels, and genres.
• Social Media Integration: Integrate social media platforms such as Twitter, Instagram, and Facebook within the app to enable users to share their opinions and reviews on the content they watch.
• Virtual Reality: Add a virtual reality feature to the app that allows users to watch content in an immersive environment.

Business and Revenue Model

• Disney+ Hotstar is a hybrid TVOD (transactional video on demand) and SVOD (subscription video on demand).
• Advertising on Hotstar: Hotstar generates the bulk of its revenues through advertising. The company has been improving its advertising capabilities to attract more advertisers and increase ad spending. 70% of the revenue comes from advertisers wanting to advertise on a cricket platform during IPL.
• Subscription Model: Hotstar offers two types of subscriptions, monthly or annual, both priced at different prices. Hotstar competes directly with Netflix and Amazon Prime Video with this subscription model.
• Hotstar Personalized Ads: The company is experimenting with personalized ads during IPL streaming to see if they can get people to buy products they see on TV during matches

In conclusion, Disney+ Hotstar can expand its reach to new geographies and personas. The overall strategies formulated above are focused on attracting viewers interested in Sports, Indian, and International content, and targeting price-sensitive viewers in Tier II and Tier III cities who are interested in Regional and Family-friendly content with ages: 25 to 40 yrs. With the addition of personalization, social media integration, and virtual reality features, the platform can enhance the user experience and increase engagement.