MUMBAI – Walt Disney Co’s streaming service Disney + Hotstar plans to release seven major Bollywood movies originally slated for theatrical release this year as it seeks to expand its subscriber lead over rivals Netflix and Amazon Prime Video.
Monday’s announcement follows similar moves on Netflix and Prime in India and takes a new hit at movie theater operators like PVR and Inox Leisure, who have seen a string of likely box office hits opting for digital premieres due to closings of cinemas in the COVID-19 pandemic.
“This is something we have been thinking about for a long time. The pandemic provided this opportunity because a number of films that are ready or about to be ready have no clarity on when they will be released,” said Uday Shankar, who directs Disney’s operations in India.
India has eased restrictions on its national blockade of more than two months, but shopping malls, multiplexes and theaters remain largely closed.
Streaming platforms like Amazon and Netflix have signed deals in the past with Indian studios for digital rights, but major releases have prioritized theater revenue in the past.
Shankar said direct-to-digital releases have always been on the horizon, due to a lack of cinema screens and limited release windows in India, but the blockade had accelerated the idea of releasing movies digitally.
Hotstar reported 300 million monthly active users last year. Most use the free service with advertising, but Disney has said it aims to turn many of these users into paid subscribers.
Disney acquired Hotstar through its $ 71 billion purchase of Twenty-First Century Fox’s film and television assets in 2019. It renamed the service as Disney + Hotstar in April.
Hotstar said the first release, a new Bollywood version of the Hollywood hit “The Fault in Our Stars,” will be released on July 24 of this year.
(Report from Shilpa Jamkhandikar; Euan Rocha and Mark Potter edition)
