Star India, which was acquired by The Walt Disney Company from 21st Century Fox in 2019, is up for sale or joint venture (JV) options as the parent company is exploring strategic options, according to a report in The Wall Street Journal.
Disney acquired the entertainment assets of 21st Century Fox for $71.3 billion. Star India was one of Fox’s premier properties through which Disney was trying to grow its footprints in Indian television and streaming business as part of its global plans.
The WSJ reported Tuesday that Disney has reached out to banks to find ways with options that include a sale of the business or a joint venture. A Reuters report seems to corroborate the development.
Star India holds a commanding position in multiple languages on linear television and Disney+ Hotstar has a formidable presence in the Indian streaming ecosystem. The Reuters report states that Disney is facing increasing pressure owing to the emergence of Reliance Industries’ streaming platform JioCinema, which outbid holder Disney+ Hotstar via Viacom18 Sports and streamed the Indian Premier League 2023 for free.
Star India is reported to have lost revenue to the tune of Rs.1,800 to 2,000 crore, according to market sources, as a result of JioCinema’s entry.
Disney under Bob Iger is understandably worried about the exposure of $3 billion towards rights to broadcast the IPL on its Star India television network through 2027.
Disney acquired UTV in 2011-12 in a deal worth Rs.2,600 crore (approx) only to shut all the business verticals soon after including the broadcast division.
WSJ has quoted anonymous sources as saying that Disney+ Hotstar could lose eight to 10 million subscribers in the third quarter. According to Disney’s earnings reports, Hotstar generated an average of 59 cents in revenue per subscriber each month in the April quarter, down from an average of $1.20 at its peak in the summer of 2022.
