SUMMARY
Media conglomerate Disney held discussions with at least one bank about ways to help the India business grow
However, the talks are in the early stages and it is not certain yet if Disney would go ahead
Last year, Disney lost IPL’s digital streaming rights to Viacom18, which has dented its subscriber base
US-based media conglomerate Disney is reportedly exploring strategic options for its Star India business, including a joint venture or a sale.
Disney also owns Disney+Hotstar, a popular streaming service in India.
The media giant held discussions with at least one bank about ways to help the India business grow, while sharing some of the costs, The Wall Street Journal reported.
However, the talks are in the early stages and it is not certain if Disney would go ahead.
Disney acquired entertainment assets of 21st Century Fox in 2019 for $71.3 Bn. Post the acquisition, Star India came under the aegis of Disney and Hotstar was rebranded as Disney+Hotstar.
At the time of acquisition, Star India was considered as one of Fox’s strongest businesses, and it was an important part of Disney’s plan to build its streaming business in India.
For a long time, Hotstar was the undisputed leader in India’s streaming industry, while Star India also held a strong position in the traditional broadcasting business. However, things started changing after Reliance-backed JioCinema started taking aggressive bets in the OTT space.
Last year, Disney lost the Indian Premier League’s (IPL’s) digital streaming rights to Viacom18 for the 2023-27 period. Since then, Disney+Hotstar has gradually lost its leadership position in India.
Meanwhile, Star India got the rights to broadcast IPL for the 2023-2027 period for a whopping $3 Bn.
The loss of the digital streaming rights of the IPL also hit Disney+Hotstar’s subscriber numbers.
In its Q2 FY23 earnings report, Walt Disney said that Disney+Hotstar’s subscribers dropped by 4.6 Mn in the February-April 2023 quarter from the previous between October 2022 and January 2023 quarter.
Disney+Hotstar’s paid user base too declined 8% to 52.9 Mn in the quarter ending April 2023 from 57.5 Mn in the previous quarter.
Besides IPL, the OTT giant also failed to renew the streaming rights for Formula One. It also lost the right to stream HBO content to JioCinema.
Recently, Disney Star also undertook a massive internal reshuffle, according to reports. As per Disney Star, the changes will allow the company to create a streamlined approach to its revenue, marketing and operations functions.
