Disney in Talks with Adani and Sun TV for Selling Its Streaming and Television Business

Disney Explores Sale of Indian Streaming and TV Business

In response to evolving market dynamics and growing competition, Disney is considering a strategic move to sell its streaming and television business in India.

Engaging Prominent Players

Disney has initiated talks with key players in the Indian business landscape, including billionaire Gautam Adani and Sun TV Network owner Kalanithi Maran. Additionally, discussions have involved private equity firms as potential stakeholders.

Diverse Possibilities Considered

The discussions are still in their early stages, exploring various possibilities. Disney is evaluating options that encompass selling a portion of its Indian operations or pursuing a combination of asset sales within the business unit.

Competitive Pressure and Digital Transformation

Disney's contemplation of this strategic move is spurred by the rapid rise of Reliance Industries' streaming platform, JioCinema, led by Asia's wealthiest individual, Mukesh Ambani. Ambani's platform gained significant traction by offering free access to the immensely popular Indian Premier League cricket tournament, digital rights to which were formerly held by Disney.

Financial Challenges and Subscribers

Disney's India streaming operations, including Disney+ Hotstar, reported a notable loss of $41.5 million against revenue of $390 million for the year ending March 2022. This financial struggle was exacerbated by a decline in subscribers, which some attribute to the loss of digital rights for IPL.

Counteracting Subscriber Exodus

To counteract the subscriber decline, Disney has embarked on a strategy of offering free cricket content on smartphones, with the aim of bolstering advertising revenue. The company hopes this approach will mitigate the impact of subscribers leaving the platform.

Competition for Content

Furthermore, Disney faces competition from Viacom18, which operates JioCinema. Viacom18 recently secured content agreements, including shows like "Succession," that were previously aired on the Disney platform.

Disney's India Business

Disney's India business comprises Disney+ Hotstar, a prominent streaming service, and Star India, which became part of Disney's portfolio when it acquired the entertainment assets of 21st Century Fox in 2019. Star India, now rebranded as Disney Star, includes a wide array of TV channels and a stake in a movie production company.

Cost-Cutting Measures

In response to macroeconomic challenges affecting advertising revenue and subscriber growth, Disney, like many others in the media industry, has been implementing cost-cutting measures. Earlier this year, Disney announced a significant workforce reduction, targeting 7,000 job cuts as part of a broader effort to save $5.5 billion in operational costs.

In conclusion, Disney's contemplation of selling its streaming and television business in India signifies the company's response to competitive pressures and financial challenges.

Engaging with influential players like Adani and Sun TV, Disney is exploring diverse possibilities in its quest for strategic repositioning within the dynamic Indian media landscape.