JV, sale among strategic options for Disney’s Star India business: WSJ report

With a growing shift towards streaming and the after effects of the loss of digital rights for the Indian Premier League, Disney is exploring strategic options for its Star India business, as per a report by Wall Street Journal. The report stated that options include a joint venture or a sale.

WSJ further reported, citing people familiar with the matter that Disney has talked to at least one bank about ways to help the India business grow, while sharing some of the costs.

The report further stated that Disney paid $71.3 billion in 2019 for entertainment assets of 21st Century Fox. At the time, Star India was considered one of Fox’s crown jewels. The deal gave Disney the broadcast and streaming rights for the Indian Premier League. Star’s OTT platform Hotstar had 150 million monthly active users, which was growing at a fast pace thanks to the highly popular T20 League.

However, after Disney lost a bidding war for the IPL streaming rights to Viacom18, the business fortunes changed. Quoting people familiar with the matter, the WSJ report stated that Hotstar is expected to lose 8 million to 10 million subscribers in its fiscal third quarter.

Disney Star recently saw its TV sports business defiling massively in India as most advertisers and ad revenue flocked to JioCinema that was streaming the Indian Premier League for free.