New Delh- The Walt Disney Co. is reportedly engaged in preliminary discussions with prospective buyers for its India-based streaming and television business. Among the notable figures involved in these discussions are billionaires Gautam Adani and Kalanithi Maran, as well as private equity funds expressing keen interest. These deliberations encompass the potential sale of certain facets of Disney’s Indian operations, encompassing sports rights and the regional streaming service Disney+ Hotstar.
These discussions represent a strategic move by Disney to explore various options for its business presence in India. These options may encompass an outright sale of assets or the establishment of a joint venture. Notably, discussions have previously taken place with Reliance Industries Ltd., led by Asia’s wealthiest individual, Mukesh Ambani.
However, Disney’s foray into these discussions comes in the wake of significant market disruptions. The Ambani-led conglomerate secured the streaming rights to the Indian Premier League for a staggering $2.7 billion, broadcasting it for free. Furthermore, Ambani secured a multi-year agreement to broadcast content previously held by Disney, such as HBO, through Warner Bros Discovery Inc.
In a strategic move mirroring Reliance’s playbook, Disney has begun streaming the ongoing Cricket World Cup in India for free. This move aims to regain subscribers, even if it entails sacrificing revenue in a nation where cricket enjoys immense popularity among its 1.4 billion inhabitants.
Despite the challenges posed by the changing landscape, Disney stands to benefit from global brands seeking to tap into India’s vast consumer base. Advertising slots for these marquee brands are being sold at a staggering $3,600 per second.
Cricket, the most popular sport in South Asia, attracts over $1.5 billion in sponsorship and media spending annually, accounting for approximately 85% of all sports-related spending in the country, according to research from Jefferies LLC.
While Disney Star faced declining subscriber numbers after losing streaming rights to the Indian Premier League, the media group has retained its foothold in cricket, securing television rights through 2027. In a strategic move, Disney Star licensed the TV rights for International Cricket Council men’s matches to ZEE Entertainment Enterprises Ltd. for four years, while Disney+ Hotstar continues to hold the digital rights.
Spokespersons for Disney in India, Sun TV Network Group, and Adani refrained from commenting on market speculation surrounding these discussions.
