StoriesWithPK
Member
- Joined
- 26 Jan 2022
- Messages
- 411
- Reaction score
- 787
In a business, leadership always look for the growth in future.Clearly, if just the financial performance is considered, it is too small to matter. In the second quarter ended March, Disney's dominant linear networks business reported a decline in revenue to $6.6 billion from $7.1 billion a year earlier - which yielded a lower operating income of $1.8 billion, down sharply from $2.8 billion a year earlier. Clearly, Disney's problems seem more at home. That said, on a stand-alone basis, the India business is not without issues and is in a bit of a spot.
On the other hand, Star India's entertainment business is immensely profitable, generating substantial cash flow annually. The network operates a diverse range of almost 60 channels. Star India holds a commanding 34% market share across entertainment and sports. On an individual basis, the company boasts an impressive 31% viewership share in the entertainment segment.
A star returns, but mounting problems keep the shine off Disney
On July 13, Iger in an interview told a business channel at The Allen & Company Sun Valley Conference in Sun Valley that the Walt Disney Company is reconsidering its approach to traditional TV business and may consider selling a part of it, including ABC and FX networks. A day before Iger's...m.economictimes.com
According to the WSJ article, it clearly said Disney Star will be cash flow negative in 2024. Nobody is questioning the present financial condition of the company.
Disney Star would've to pay huge amounts to BCCI for 50-over WC 2023. They've to pay IPL 2024 linear rights and T20 WC 2024 digital rights. All these with so much uncertainty.
Disney is exploring JV or sale mainly due to this. They don't know whether they'll achieve break-even.
