Bob Chapek optimistic for Disney+ future

Disney+ will reach its stated goal of 230-260 million subscribers, according to Disney CEO Bob Chapek, even if it does not win the upcoming Indian Premier League (IPL) media rights. Sports is a strategic offering for Disney+ Hotstar, according to Chapek, and the company will try to keep the IPL rights.

"Sports are a very important strategic offering for us because of the level of fandom and passion. If you look at India, we'll almost certainly try to extend our IPL rights. But we're confident that even if we don't win the auction, we'll be able to meet our 230 to 260 target. As a result, it's a critical component for us all over the world. Obviously critical in India, but not so much in terms of achieving the 230 to 260 number that we've aimed for," Chapek told.

Disney+ is expected to reach 230 million to 260 million subscribers by the end of fiscal year 2024, with Disney+ Hotstar accounting for 30-40% of the projected paid subscriber base.

He also stated that Disney's sports proposition varies by market. "As you are aware, it is not a significant component for us in Europe, but it is in Latin America. One of the differences between how we go to market in Asia versus how we go to market in Latin America versus how we go to market in Europe is the way we go to market in each territory. That's a significant portion of it. And where you see things like in Latin America, where a large percentage of our customers subscribe to our services because of sports, that's a bigger part of it," Chapek went on to say.

IPL is a part of Disney+ Hotstar's broader entertainment and sports portfolio, according to Chapek. He also mentioned that Disney+ Hotstar is working on a lot of local content, which will help it cope with the loss of the IPL.

"While the IPL is an important part of the Disney+ Hotstar content offering, it's only one part of a larger entertainment and sports portfolio. Our Disney+ Hotstar offering has a massive collection of local content, and we add over 18,000 hours of original programming every year, in addition to the obvious original content and library content from Disney, Pixar, Marvel, Star Wars, and NatGeo. So, while it's an important component, the local content that we're developing will actually mitigate our impact if we don't win the IPL auction. So it's an important component, but it's not like we're going to lose money if we don't get it," Chapek explained.