HotStar Business Model: Explore to Know Everything About the Streaming Platform

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Star Network has stepped ahead to introduce a parallel ‘YouTube’, it is estimated that the modern generation will not prefer to watch TV content as they are offered with much conventional and convenient way of entertainment, HotStar can be considered as a future of entertainment.

HotStar offers quite engaging and interesting content to its users to leverage, users are availed with Bollywood blockbuster movies, series, and much more. HotStar is an advanced platform that provides users with exclusive and engaging content to explore as per their requirement on any of the smart devices of their choice.

Hotstar business model is quite similar to the YouTube business model, it generates revenue from advertising. It is estimated that this engaging platform will offer a combo pack to advertise to those individuals who want to leverage its advantage. They just need to make a purchase or buy airtime on TV to leverage advertising on the Hotstar.

What is HotStar Exactly?

Hotstar is one of the top Indian streaming services which is owned by Novi Digital Entertainment (a subsidiary of Star India). This video streaming platform features mainly two subscriptions tiers, these tiers include:

1. VIP Tier.

2. Premium Tier.

VIP Tier

It mainly focuses on sports content and domestic programs, thus it is proven to be best for sports lovers and entertainers to leverage engaging and fresh content.

Premium Tier

It includes premium television series, which simply include Showtime, HBO, and many more American original series, and also international movies which any of the premium users can leverage as per their convenience from anywhere and at any time.

As of March 2020, Hotstar possesses more than 300 million active users. One of the Statista reports also showed the distribution of the video streaming service during 2018, which was based on a number of active users of different entertainment platforms. This data highlighted that Hotstar was ranking on the top as it had the highest share of active users, there were around 40.2% activeHotStar users followed by Jio TV as it has only 18% of active users during the same month.

Video Streaming services market

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Following the purchase in February 2020 of Star India’s parent company Fox by Disney, the company announced that it would launch a plan in April 2020 by integrating it’s brand Disney+ with Hotstar to provide users with more engaging and fresh content. This will allow the platform to leverage Hotstar’s existing user base and infrastructure, later on, 3 April 2020, the streaming platform was successfully merged with Disney+.

Hotstar has also introduced numerous versions of the service which the platform released targeting international markets, this entertainment platform mainly focuses on original programming by STAR and domestic sports such as IPL, or any other, but not a single content from its partners Disney+ or any other American partners. These versions operated only by only “Hotstar” itself without the involvement of any other partners of the streaming brand.

How Does HotStar Actually Work?

It is not wrong to say that Hotstar has transformed the online streaming platform in the whole world. Star India has made an official announcement and has introduced Hotstar in 2014. This video streaming platform provides its users with varieties of local TV shows in an effective and systematic manner, while users who opt for a paid subscription have rights to leverage quite earlier than the television.

Non-premium members of the streaming platform are also provided with fresh and unique content, they can watch the local programs, some movies, and much more with a day delay. Hotstar users need to consider opting for the Sports pack to stream football, cricket, hockey, and many other sports activities on the video streaming platform.

Star India provides around five years of digital contract of IPL just for Rs. 16,347, this attack a huge base of sports fans to leverage the content as per their choice, it has even scripted the history when it comes to view. Hotstar VIP members have the right to access and leverage all the premium content on the platform, but they are not allowed to explore American/International TV programs. One of the main purposes of launching a VIP pack for the users was to enhance the conversion rate of sports shows.

VIP pack is very beneficial for the sports lover as it provides them with lots of content related to sports they love, it also allows them to grab their favorite IPL (Indian Premier League) latest content that also without any hassle. 

Pro kabaddi league, English premier league, Bundesliga, F1, Grand Slams, Indian premier league, and many more have acquired a huge fan base across the world, thus HotStar is availing sports lovers with engaging and fresh content to leverage as per their convenience that also at a pocket-friendly price.

Explore to Know How Much Revenue HotStar Regenerates?

Hotstar Specials offer to its users and also provides them thrilling experience, especially when they opt for premium plans. This video streaming platform is available in different languages, and it avails its users with the updated content they want to leverage on the platform. As it provides users with engaging and fresh content, its popularity is increasing rapidly among users all around the world.

According to the report, around 48.1 million monthly active users used HotStar, while around 13.4 active monthly users use Amazon Prime Video all over the world. In another report, it was found that Hotstar, a video streaming platform, generated revenue of over eleven billion Indian rupees during the financial year 2019. It was also found that a large amount of the revenue was generated from India itself while revenue from the U.S. increased by over 400% compared to that which was found in the previous year.

Boston Consulting Group (BCG) report states that Hotstar has spent more than INR 4K Cr for providing its users with unique and updated content, but did you really know that what this video streaming platform has earned beyond the market share? Company filings indicate that Hotstar in the financial year (that is 2019), generated an operational revenue of INR 1112.74 Cr, which is around 94.7% leap from the revenues, which was measured in the financial year 2018.

Hotstar Revenue

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Hotstar has agreed that it generated revenue from advertising, it provides advertising service for subscriptions from users who have opted for premium content and poses the licensing of content rights, and also some revenue from programming. However, in the filings, it was found that the company has not provided segregated details of revenue generation; it has just identified the operational revenue that has been raised from the sale of services.

Hotstar Loss

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However, the company spent around INR 1677.51 Cr during 2019 and has faced a loss around INR 554.38 Cr in the same year.  In comparison to that, the company has only spent around INR 965.69 Cr and faced the loss of INR 389.02 Cr in the same year.

In the filings, the company also said that it offers users, with 100K hours of content, this content includes spanning TV shows, live airing, sports tournaments, and much more across 9 languages. The company hosted over 300 Mn users during April 2019 and set a global benchmark of around 18.6 Mn simultaneous viewers for the live stream only during the finals of the Indian Premier League 2019.

The HotStar has experienced a huge growth of 2X in watch time over 2018 and 2019 and has to lead the OTT video streaming space in India and other countries continuously.

What is Next for Hotstar?

Hotstar is considered as the home of highest rated TV shows in India, which provides users with engaging content in eight languages, this content has been spanning from 15 different channels. As this video streaming is satisfying all the needs of the customers, there is no doubt that it will be a brighter future and will grasp the #1 position among the video streaming apps worldwide.

Video Streaming Platform

Do you want to start your own video streaming platform similar to Hotstar? Alphanso Tech is a video and audio streaming product that can help you get started or built your own custom platform. Get in touch with us on to know more.

Post by Alphanso Tech

Created in 2013, Alphanso Tech is a leading IT Consulting company with a presence in the USA, Canada, and India.We are a trusted and leading service provider to many top-tier companies in the area of Custom WordPress Development , Web Application Development , iOS App Development , Outsourcing Services, Online Marketing and many other related activities.

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