Breaking Disney exploring options to sell or join venture Disney Star India Business

[Deep Mody]

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https://twitter.com/x/status/1722380212036362693

https://twitter.com/x/status/1722395006114394210

 

[stiwari]

Disney India sales: Disney would like to stay in the Indian market: Bob Iger - The Economic Times

Walt Disney CEO Bog Iger stated that while the company is exploring options for the Star India division—also referred to as Disney Star—it would want to remain in the Indian market. Iger stated that Disney has a chance to increase its market share while acknowledging that the company is...

m.economictimes.com

 

[dino29]

Disney India sales: Disney would like to stay in the Indian market: Bob Iger - The Economic Times

Walt Disney CEO Bog Iger stated that while the company is exploring options for the Star India division—also referred to as Disney Star—it would want to remain in the Indian market. Iger stated that Disney has a chance to increase its market share while acknowledging that the company is...

m.economictimes.com

So as per above article it is quite clear that most probably Disney would be looking at trying to find a strategic partner to reduce the losses incurred in its sports business, here too interestingly Star Sports TV Channels are generating profit which have again risen 9% this year so basically it is the Digital/OTT Sports biz which is contributing to the operating loss.


As far Disney-Star's TV Channels Entertainment Division (All channels barring Sports Ones) is concerned again it is generating great revenue/ profit which is helping not only offset sports business losses but even post that managing to keep overall business in growth mode by still maintaining a decent profit margin.

If we look at data for Disney+Hotstar OTT platform again it may have lost large number of subscribers but viewership is on a rise as Freemium model is yielding great success to bring in viewers for content across genre thus attracting more brands onboard which inturn is adding up to increase ad revenues which coupled with subscription revenue has again lead to overall revenue increase and reduction in losses.

As i have said that India is one the very few markets where still Linear TV business not only is still viable but offers huge growth potential, both OTT and TV will continue to prosper and each has its advantages + disadvantages which helps them each cater to wider audience base ..... Mobile Streaming may be on the rise but as far watching content on Big Screen is concerned still TV holds distinct advantage over OTT so u will see TV subscriber base still being quite strong while OTT too gaining edge bcoz of many people preferring to opt to Smart TV's or Boxes to access content from both platforms....as broadband connectivity grows and becomes affordable consumption of Linear TV+OTT on such devices will increase but till then Satellite TV will maintain its lead on the large screen. Those completely discontinuing with satellite TV will remain extremely small % while OTT will still see major consumption still happening on mobile devices

 

[Ashok Varma]

So as per above article it is quite clear that most probably Disney would be looking at trying to find a strategic partner to reduce the losses incurred in its sports business, here too interestingly Star Sports TV Channels are generating profit which have again risen 9% this year so basically it is the Digital/OTT Sports biz which is contributing to the operating loss.


As far Disney-Star's TV Channels Entertainment Division (All channels barring Sports Ones) is concerned again it is generating great revenue/ profit which is helping not only offset sports business losses but even post that managing to keep overall business in growth mode by still maintaining a decent profit margin.

If we look at data for Disney+Hotstar OTT platform again it may have lost large number of subscribers but viewership is on a rise as Freemium model is yielding great success to bring in viewers for content across genre thus attracting more brands onboard which inturn is adding up to increase ad revenues which coupled with subscription revenue has again lead to overall revenue increase and reduction in losses.

As i have said that India is one the very few markets where still Linear TV business not only is still viable but offers huge growth potential, both OTT and TV will continue to prosper and each has its advantages + disadvantages which helps them each cater to wider audience base ..... Mobile Streaming may be on the rise but as far watching content on Big Screen is concerned still TV holds distinct advantage over OTT so u will see TV subscriber base still being quite strong while OTT too gaining edge bcoz of many people preferring to opt to Smart TV's or Boxes to access content from both platforms....as broadband connectivity grows and becomes affordable consumption of Linear TV+OTT on such devices will increase but till then Satellite TV will maintain its lead on the large screen. Those completely discontinuing with satellite TV will remain extremely small % while OTT will still see major consumption still happening on mobile devices

RIL/Jio too looking for OTT content/Sports area, not for Linear TV. so its perfect time for Disney-RIL deal for Hotstar-Jio Cinema merger.

 

[kamathur]

I think let's step back a bit and understand what's being done here.

Disney+ Hotstar is having a large subscriber base but low ARPU. While the Netflix is having the opposite - where it's acquisition costs are low and doesn't have cost overheads like linear transmission or LIVE sports. Yet, it's most sought after OTT platform by all consumers across.

So Disney is looking at having a similar model, where it's okay to loose a couple of subscribers who are somewhat committed owing to tidbits what Disney+ Hotstar is offering. So to reach at Netflix levels one has to reduce acquisition costs, so sports like IPL, ISL are out. Leading to flux of subscribers opting out. Also, HBO deal wasn't doing too much for them - so that too is out of window.

With these changes they have got cash in hand - leading them to control Hulu. Which would help them in reducing acquisition cost and enter markets offering niche - which was lacking previously - so slowly the subscription costs will go up.

the next shape up would in linear - where they would offset lot of that business, allowing them on concentrating on niche and building ESPN again worldwide. Especially in Indian market.

So in future we would have a stronger OTT platform competing with Netflix and Prime Video, namely Disney+ (which would include abc, disney, marvel, fox, hulu etc.) With localized content strategy like others only for platform. This is why Iger is still saying they would continue to be there in Indian market in the longer run. But they would having a healthier balance sheet in comparison to now.

What is Jio gaining here, with well established linear brand, it would build the strategy of Paid and free - and will huge visibility in multiple languages which it's missing, and may look at going free completely - by ditching Paid model completely and rely one ad revenues - but with premium quality transmission - like it's doing in IPL and ISL. Once their penetration increases then work on the expansion of properties and owing the end to end cycle of game(s) and have feeds to various channels on both OTT and linear which would have a huge demand. Unlike today - this market doesn't even exists. And add more international sports like NBA etc.

So in a way it's a win-win for both the parties. And as subscribers it would be savings on the pocket.

Here, we aren't forgetting the Jio fibre business which is going to gain so much by this move. Where other players like Airtel and TATA Play would have to pay from their nose - to keep their DTH businesses running for the content owned by Reliance. All in all very interesting 6-8 months where this would get shaped.

 

[StoriesWithPK]

Disney is Shutting Down All Cable Channels in Asia. U.S. Networks Could Be Next | Cord Cutters News

Disney further paring down its international cable operations could signal big changes for its networks in the U.S. The media giant is set to pull the plug this year on its remaining linear TV channels in Southeast Asia, Hong Kong, Taiwan, and Korea. Just last month, Disney shut down cable...

cordcuttersnews.com

The media giant is set to pull the plug this year on its remaining linear TV channels in Southeast Asia, Hong Kong, Taiwan, and Korea. Just last month, Disney shut down cable operations in Vietnam, pulling The National Geographic channel, Nat Geo Wild, and Baby TV, according to VnExpress. Other at-risk channels include Star Chinese Movies, Star Chinese Channel, Star Movies, and Star World. Disney is also in talks to sell off its India assets.

 

[stiwari]

Disney is Shutting Down All Cable Channels in Asia. U.S. Networks Could Be Next | Cord Cutters News

Disney further paring down its international cable operations could signal big changes for its networks in the U.S. The media giant is set to pull the plug this year on its remaining linear TV channels in Southeast Asia, Hong Kong, Taiwan, and Korea. Just last month, Disney shut down cable...

cordcuttersnews.com

The media giant is set to pull the plug this year on its remaining linear TV channels in Southeast Asia, Hong Kong, Taiwan, and Korea. Just last month, Disney shut down cable operations in Vietnam, pulling The National Geographic channel, Nat Geo Wild, and Baby TV, according to VnExpress. Other at-risk channels include Star Chinese Movies, Star Chinese Channel, Star Movies, and Star World. Disney is also in talks to sell off its India assets.

I think cricketing rights loss in India is major factor contributing so many action across world by Disney and it shows general death of linear TV i.e. Cable and DTH in coming days across world due to online contents.

 

[Aksgr]

I think cricketing rights loss in India is major factor contributing so many action across world by Disney and it shows general death of linear TV i.e. Cable and DTH in coming days across world due to online contents.

No, basically wall streat doesnt believe in cabel. Thats just it

 

[Ashok Varma]

No, basically wall streat doesnt believe in cabel. Thats just it

Now Disney wants to stay in India for some more years to earn revenue/profit from linear tv, might ditch sports business.

 

[Raju lal]

Now Disney wants to stay in India for some more years to earn revenue/profit from linear tv, might ditch sports business.

Disney may choose the Sony way for sports & ott. Throttle aggressive aquisitions and investments in sports. May give up the race to Viacom 18 and stay in the second line with minimal properties. On the other hand TV entertainment go same and they may continue studio/production buisness with careful investments.
Due to its massive size Star is not affordable for most Indian investors, except few like Reliance. Most foreign MNCs facing recession so that no one dare to spend money in India.
Bob Iger's mind changed means the pressure for quick sale of Star has reduced. That means they may not go for sacrifices in valuation. In earlier situation Reliance can negotiate more and get a majority share. Now the chances are less and Disney seems now seeks for a minority partner or demands un challengable stake value. But becoming a stake holder in 2 major rivals concurrently is complicated for Reliance. Reliance likes to have a controlling stake inorder to merge assets. So I doubt the fate of proposed deal of Disney Star with Reliance. It may get dropped due to Iger's diversion in India strategy.