SUMMARY
The top executives of RIL and Disney held direct negotiations recently as the latter mulls various strategic options for its India business
The US-based broadcast major has held talks with multiple potential buyers with negotiations ranging from complete sale to a piecemeal transaction
This comes at a time when RIL’s JioCinema has bolstered its streaming play at the expense of Disney+ Hotstar, which has been witnessing a big fall in user numbers
Disney+ Hotstar’s parent Walt Disney Co reportedly held talks with Reliance Industries Ltd (RIL) for the potential sale of the former’s streaming and television business in India.
The American broadcast major has held a range of talks with potential buyers, which included a complete deal for the sale of the entire Disney Star business as well as a piecemeal transaction that included a combination of assets, including sports rights and streaming platform Disney+ Hotstar, Bloomberg reported citing sources.
As per the report, the top executives of RIL and Disney held direct negotiations recently as the latter mulls various strategic options for its India business.
The report said that the talks are still in preliminary stages and may not result in a deal. However, as per the report, the American media conglomerate may decide to hold onto the assets for longer.
“As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis… We have made and will continue to make necessary disclosures in compliance with our obligations under SEBI… Regulations 2015 and our agreements with the stock exchanges,” a spokesperson of RIL reportedly said.
The development comes two months after reports surfaced that Disney was exploring both a joint venture and a sale of its Star India business, which also includes streaming giant Disney+ Hotstar.
Disney is said to be mulling various strategic options at a time when competitor and RIL-backed JioCinema has waltzed into the Indian streaming arena. In the past one year, JioCinema has snatched the digital streaming rights for marquee sports events such as the IPL, FIFA World Cup 2022 and the media rights for the domestic matches of the Indian cricket team from incumbent Disney+ Hotstar.
JioCinema has also broadcast many tournaments, including the IPL, for free and has signed content partnerships with American studios such as HBO and NBCUniversal to emerge as the home of premium English content in India.
As a result, Disney+ Hotstar reportedly saw an exodus of over 20 Mn subscribers between September 2022 and July 2023.
Meanwhile, JioCinema’s plans to line up more than 100 Indian films and TV shows, produced at a cost of INR 2,000 Cr, might also put a dampener on Disney+ Hotstar’s fortunes in India. With Zee and Sony already headed the consolidation way, it remains to be seen if these two giants also join hands.
