Disney is reportedly considering different strategies for its Star India business, which could include partnering with another company or even selling it, marking a shift in dynamics for a significant asset it acquired from Fox. While Disney is still in early talks, there’s no clear indication of the path they might take.
What Happened? Per a WSJ report, the entertainment titan, along with its competitors, is focusing more on streaming services and moving away from traditional TV platforms, leading to considerable spending on deals, content, and tech across the globe.
Disney actively saw Star India as a key piece in its global streaming expansion plan when it bought entertainment properties from 21st Century Fox for $71.3 billion (₹5.87 lakh crore) in 2019.
See also: JioCinema Flexes Financial Muscle After IPL Success, Plans ₹4,000-Cr Spend To Bolster Content
However, Star India’s success took a hit last year when Disney lost streaming rights for the popular Indian Premier League cricket matches to Mukesh Ambani‘s Jio Cinema. This loss impacted Star's Hotstar mobile streaming service, as it made the service less appealing to many subscribers. Analysts predict that Hotstar could lose up to 10 million subscribers in the third fiscal quarter.
Despite Disney’s earnings from its streaming services in India being lower than in the U.S., the corporation is still striving to make its streaming business profitable by Sep. 2024. Amid these challenges, the company continues its cost-cutting efforts and is set to announce its quarterly earnings on Aug. 9.
Read next: Hotstar’s Powerplay: ICC Cricket Tournaments Go Free To Bat Against Subscriber Slide
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