Walt Disney CEO Bob Iger last week hinted towards selling the TV and digital business of Star India citing challenges faced by them. After the development, there is a murmur in the industry about its possible partners in India.
One set of experts suggests a possible partnership with Uday Shankar-led Bodhi Tree’s joint venture with Viacom18 and the other set suggests a merger with Sony Entertainment, which has been waiting the past year and a half for Indian regulatory approval for an ongoing merger of its India TV business with Zee Entertainment
Expressing optimism about a possible deal in India, a report by MoffettNathanson stated, “We believe fixing Disney’s India mess would be a great start to improving long-term cash flow and profitability” at the company.
The analysts outlined suggested two options for Disney’s business in India.
“First, Disney can turn to the new joint venture run by their former executive (Uday Shankar) and create an even larger joint venture, which will de-consolidate India results and put the asset into stronger and more strategic hands,” the MoffettNathanson team highlighted.
“Second, Disney can turn to Sony, which already has a significant presence in India, and try to partner with them.”
A news report by Hollywoodreporter.com quoting MoffettNathanson analysis mentioned that Sony has been waiting the past year and a half for Indian regulatory approval for an ongoing merger of its India TV business with local entertainment powerhouse Zee Entertainment. “So MoffettNathanson noted that there could be some difficulty to the company also working with Disney.”
Wells Fargo analyst Steven Cahall in a Wednesday report noted that Iger’s financial model for Hotstar for the fiscal year 2023 includes an estimated subscriber base of around 56 million and $448 million in revenue, “making Hotstar just 5% of Disney+ revenue.”
“Setting aside the sports rights, it’s important to acknowledge that Disney still has a very strong entertainment business in India,” Vivek Couto, executive director of Media Partners Asia, told Hollywood Reporter, noting that Star India has a share of over 20% of the local TV audience.
Couto added, “However they recalibrate, Disney will be thinking about how to leverage Star India’s local IP, reach, and viewership — and if they are seeking partnerships, they’ll be looking long-term at who can best maximise the Disney franchises across theatrical, consumer products and maybe even a first India theme park.”
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