World Cup. This however, belies the challenges the company faces on other fronts in India. The Star Sports business, integral to Disney's strategy, incurred a significant operating loss, raising questions about the sustainability of its current business.
Disney's Star Sports business clocked a $444 million operating loss in the nine months to July 1, exceeding the previous fiscal year's loss of $237 million. The acquisition of 21st Century Fox, including Star India, marked Disney's ambitious foray into the Indian subcontinent in 2019. But the subsequent loss of streaming rights to JioCinema and Star Sports’ substantial losses underscore the competitive hurdles Disney must navigate.
Disney Star operates more than 70 multilingual TV channels in India, besides Disney+ Hotstar. The looming question of whether it will stay the course in India or opt for a strategic alliance with a local player like Jio remains unanswered. Will it be a full acquisition, or a strategic partnership that preserves Disney's foothold while mitigating risks.
As discussions with potential stakeholders such as Reliance, Adani Group and Sun TV Network unfold, Disney will have to decide the fate of its Indian assets. Will Jio choose a partial acquisition, allowing Disney to maintain a presence, or will it pursue a complete takeover to consolidate its position in the Indian media landscape? The prospect of securing exclusive rights at a favourable cost could drive Jio towards a more substantial investment, reshaping the dynamics of the sector. Its potential interest in acquiring Disney's India assets aligns with its ambitious growth strategy.
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