Disney considers selling or partnering its India business, source says
According to a source with direct knowledge, Walt Disney is currently exploring options to sell or find a joint venture partner for its digital and TV business in India. The discussions are said to be in a very early stage, and potential buyers or partners have yet to be approached. It is still uncertain how the process will unfold.
The move by Walt Disney to consider selling or seeking a joint venture partner for its India digital and TV business reflects the company’s strategic evaluation of its operations in the Indian market. As the media and entertainment landscape evolves, companies often reassess their business strategies to align with changing market dynamics and focus on core areas of growth.
While the details of the potential sale or partnership are scarce, this development suggests that Walt Disney may be exploring opportunities to optimize its operations and assets in India. By engaging in discussions with potential buyers or partners, the company may be seeking to identify synergies or strategic alignments that could drive growth and maximize the value of its Indian digital and TV business.
It’s important to note that at this stage, the talks are very early, and no concrete plans or agreements have been reached. The outcome of the discussions and the potential sale or partnership are uncertain, as the process is still in its preliminary stages.
Walt Disney has a significant presence in India through various ventures and partnerships, including its ownership of the popular Disney+ Hotstar streaming platform. The Indian market represents a vast and growing consumer base for digital content and entertainment, making it an attractive sector for companies in the media industry.
However, the competitive landscape and evolving consumer preferences in the Indian market pose challenges and opportunities for companies operating in the media and entertainment space. By exploring options for its India digital and TV business, Walt Disney aims to strategically position itself to navigate these dynamics and capitalize on the potential growth opportunities in the market.
In conclusion, Walt Disney is reportedly exploring options to sell or find a joint venture partner for its India digital and TV business. The talks are in the early stages, and potential buyers or partners have yet to be approached. The company’s evaluation of its operations in India reflects its strategic focus on optimizing its business and assets in the ever-changing media and entertainment landscape. As the discussions progress, more details about the potential sale or partnership may emerge.
According to the source, internal discussions have commenced within Walt Disney regarding the potential options for its India digital and TV business. These discussions are said to be led by executives at Disney headquarters in the United States. However, the specific details of the discussions and the potential outcomes remain undisclosed at this stage.
When approached for comment, Walt Disney did not respond to a request from Reuters. As a result, further information about the company’s intentions or plans regarding its India digital and TV business currently needs to be made available.
Despite the lack of specific details, this news has positively impacted the company’s stock. On Tuesday, Walt Disney’s shares closed up by 1.6%. This suggests that investors may view the exploration of options for the India digital and TV business as a potentially favourable strategic move.
It’s important to note that internal discussions at this stage may involve evaluating various possibilities and assessing the best course of action for Walt Disney in the Indian market. The considerations could include finding a suitable partner, pursuing a joint venture, or exploring an outright sale of the business.
As the discussions progress and more clarity emerge regarding Walt Disney’s plans for its India digital and TV business, it will be interesting to see how the company strategically positions itself to capitalize on the opportunities in the Indian market while aligning with its overall business objectives and growth strategy.
In conclusion, talks have reportedly begun internally at Walt Disney to evaluate the best course of action for its India digital and TV business. These discussions are being driven by executives at Disney headquarters in the United States. However, the specific details and potential outcomes of these discussions have not been disclosed.
Walt Disney has not provided an official response or comment on the matter. The positive market response, reflected in the company’s increased share price, suggests that investors may perceive the exploration of options as a potentially beneficial move. As the discussions progress, more information about Walt Disney’s plans for its India digital and TV business may become available. According to The Wall Street Journal, Disney has been engaged in talks and has reportedly reached out to at least one bank to explore potential strategies for helping its Indian business grow while also sharing some of the associated costs. The specifics of these discussions and the possible outcomes are not yet known.
This approach suggests that Disney is actively exploring options to optimize its operations in India by seeking external support and expertise. By partnering with a bank or financial institution, Disney may aim to leverage their resources and knowledge to drive growth and efficiency in its Indian business while mitigating some of the financial burdens.
The Indian market holds immense potential for growth in the media and entertainment industry, given its large consumer base and increasing digital adoption. By seeking ways to support the growth of its Indian business, Disney is positioning itself to capitalize on the opportunities presented by this dynamic market.
As the talks progress and potential strategies are considered, more details may emerge regarding the specific plans Disney has in mind to facilitate the growth of its Indian business and share costs. The involvement of a bank or financial institution could bring fresh perspectives and resources to the table, enabling Disney to make strategic moves that align with its long-term objectives.
Overall, Disney’s engagement in discussions with at least one bank indicates its proactive approach to finding ways to drive growth and manage costs in its Indian business. By seeking external support and expertise, the company demonstrates its commitment to optimizing its operations and capitalizing on the growth potential in the Indian media and entertainment industry.The discussions surrounding Disney’s India digital and TV business come when the company is facing mounting pressure from the emergence of Reliance Industries’ streaming platform, JioCinema. Run by Mukesh Ambani, JioCinema has gained attention through various marketing strategies, including offering free access to the Indian Premier League (IPL) cricket tournament, the digital rights of which were previously held by Disney.
Reliance Industries, led by Mukesh Ambani, is a major conglomerate in India with diverse business interests. The company’s foray into the streaming industry with JioCinema has introduced competition for Disney in the Indian market. By leveraging the popularity of the IPL cricket tournament, which attracts a massive audience in India, JioCinema has gained traction and positioned itself as a formidable player in the streaming space.
The loss of the digital rights to the IPL cricket tournament, previously held by Disney, has likely impacted Disney’s position in the Indian market. As a result, Disney is now exploring strategies to navigate this evolving landscape and potentially regain its foothold in the Indian streaming industry.
The discussions about finding a partner or exploring options to share costs suggest that Disney is seeking ways to bolster its presence and competitiveness in the face of new market entrants like JioCinema. By researching potential collaborations and cost-sharing initiatives, Disney aims to strengthen its position and maintain relevance in the rapidly growing Indian digital and TV market.
The competition between Disney and JioCinema underscores the intense rivalry within the streaming industry, where players vie for market share and audience attention. As the Indian market continues to evolve and consumers increasingly embrace digital entertainment platforms, companies are strategizing and adapting to capture a larger share of this lucrative market.
In conclusion, Disney’s discussions regarding its India digital and TV business take place against the backdrop of increasing pressure from Reliance Industries’ JioCinema streaming platform. JioCinema’s marketing efforts, including offering free access to the IPL cricket tournament, have posed a competitive challenge for Disney. As a result, Disney is exploring strategies to strengthen its position and regain market share. The evolving landscape of the Indian streaming industry highlights the intense competition and the importance for companies to adapt and innovate to succeed in this dynamic market.
According to research firm CLSA, Disney+ Hotstar’s subscriber base in India has reportedly declined by approximately five million users following the loss of digital rights for the Indian Premier League (IPL) cricket tournament. This decrease in subscribers reflects the impact of Reliance’s JioCinema, which gained traction by offering free access to the IPL.
Reliance’s broadcast venture, Viacom18, which operates JioCinema, further solidified its position by striking a deal with Warner Bros in April, securing content rights to popular shows such as HBO’s Succession. These shows were previously aired on the Disney platform in India. Viacom18’s shareholders include Reliance, Paramount Global, and Bodhi Tree, a joint venture between James Murdoch and former Star India executive Uday Shankar.
Disney’s business in India consists of the Disney+ Hotstar streaming service and Star India, which it acquired when it purchased the entertainment assets of 21st Century Fox in 2019.
The discussions surrounding the potential sale or partnership of Disney’s India digital and TV business have been described as confidential. A source, who preferred to remain anonymous, stated that finding an outright buyer in India could be challenging. This is due to the India business’s perceived enterprise value, estimated at around $15-16 billion when Disney acquired Fox’s company.
The loss of digital rights to the IPL, a viral sporting event in India, has significantly impacted Disney’s subscriber base for Disney+ Hotstar. The IPL has been a key driver of subscriptions for the streaming service. The decline in subscribers underscores the competitive landscape of the Indian streaming industry and the need for players to secure attractive content rights to retain and attract audiences.
Viacom18’s strategic partnerships and content acquisitions, such as the deal with Warner Bros, have strengthened JioCinema’s position in the market and intensified competition for Disney. The availability of popular shows on JioCinema that were previously aired on the Disney platform has likely influenced consumer preferences and contributed to the decline in Disney+ Hotstar subscribers.
As Disney explores options for its India digital and TV business, the challenges of finding an outright buyer in the Indian market become apparent. The significant enterprise value associated with the company may present obstacles to a straightforward sale. However, the potential for a partnership or joint venture arrangement remains possible as Disney seeks to navigate the evolving streaming landscape in India.
In conclusion, the loss of IPL digital rights has reportedly resulted in a decline of nearly five million subscribers for Disney+ Hotstar in India. Viacom18’s JioCinema has capitalized on this opportunity by offering free access to the IPL and securing content partnerships, which has intensified competition for Disney. The discussions surrounding the potential sale or block of Disney’s India digital and TV business are confidential, and finding an outright buyer in India may pose challenges due to the enterprise value associated with the business. As the streaming industry in India continues to evolve, strategic decisions by players like Disney and Viacom18 will shape the competitive landscape in the coming years.
