Walt Disney is exploring various possibilities for its Star India business, such as forming a joint venture or opting for a sale, in order to facilitate growth and reduce expenses. According to a recent report by the Wall Street Journal, discussions are at an early stage, and no definitive decisions have been made.
Disney's presence in India encompasses the Disney Hotstar streaming service and Star India, which it gained through the acquisition of 21st Century Fox's entertainment assets in 2019.
Star India's revenue is projected to decline by approximately 20% this year, reaching a little less than $2 billion.
For the fiscal year ending in September 2023, earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to drop by roughly 50%. Additionally, Disney's Hotstar streaming service is anticipated to experience a decline in subscribers, with an estimated loss of 8 million to 10 million subscribers in the next quarter, according to the WSJ.
In a previous announcement, the company unveiled plans to streamline operations and save $5.5 billion in costs by cutting 7,000 jobs. This comprehensive restructuring effort was initiated in February.
Star India, rebranded as Disney Star in the previous year, comprises numerous TV channels and holds a stake in a movie production company.
In the most recent quarter, Walt Disney reported streaming losses of $400 million, alongside a decrease in subscribers. The majority of the subscriber attrition was observed in Disney Hotstar after the loss of streaming rights for Indian Premier League cricket matches. Furthermore, Disney experienced a decline of 300,000 customers in the United States and Canada, where prices were raised in December.