Hotstar is ready to lose the 5% who subscribe for HBO rather than the 90% who subscribe for Sports that is why still they are buying the ICC Digital rights and Disney franchise and all. At the end of the day what matters is who you consider as your user.
Suppose there are 100 people 30 will be ready to buy your subscription whatever high the price/content and 30 will not buy the subscription how much low the price along with all the content and the rest 40 will buy depending on the price and good content
For Netflix they are ready to target only the first set of 30 by setting a high price so they can make profit and also by minimising password sharing and account sharing. Whereas Hotstar wants to target the 30 and the 40 by adjusting the price point and number of concurrent users.
Here the problem is like Netflix if you charge amount only for Web series and Movies the fact is we can find n number of websites where we can watch them all for free in high quality so not many will be interested whereas live sports is not like that that is why Hotstar had lot many users main reason they were not in profit was they bought IPL at ridiculously high rate which meant they will not recover the amount invested. I am sure with the amount JioCinema bought FIFA WC they would have also telecasted it at a loss and probably will be telecasting this IPL at loss too. The IPL they will recover the cost from next year maybe they wont point is you have to decide who your user base is and target them for Hotstar it was entire OTT users. Now Hotstar is modifying their library to have a combination of enough sports along with their soaps, movies and web series compared to Netflix who are still concentrating on their niche web series and movie users