Disney Hotstar Sale
Hotstar Sale: The Walt Disney Company, a prominent multinational media and entertainment conglomerate, has reportedly initiated discussions with Reliance Industries Ltd. regarding the potential sale of its OTT (over-the-top) platform, Hotstar.
These talks come in the wake of Disney’s unsuccessful bid to acquire media rights for the 2023 Indian Premier League (IPL) and India cricket matches, losing them to Reliance. The failed acquisition has led to significant customer attrition on Disney+ Hotstar.
Disney’s Quest for IPL Media Rights
Disney’s aspirations to secure media rights for the 2023 IPL and India cricket matches faced setbacks as Reliance clinched these rights. Consequently, Disney suffered a substantial loss of over 20 million customers from Disney+ Hotstar. In addition to IPL rights, Disney also failed to renew its contract for HBO content.
Another blow for Disney was the loss of media rights from the Board of Control for Cricket in India (BCCI). As a result, Disney+ Hotstar will no longer host Indian cricket matches, as Viacom18, owned by Reliance, secured the rights. Disney Star opted out of the online auction for these rights, further exacerbating their content acquisition challenges.
Reliance’s Stance and Discussions about Hotstar Sale
While both Reliance and Disney Star have refrained from disclosing detailed information about their discussions on a potential Hotstar sale, Reliance has stated that they do not comment on media speculation and rumors. They emphasized that their company continually evaluates various opportunities.
Disney in talks with Reliance to sell Hotstar and Star Sports. (ET). pic.twitter.com/RPZpti6wub
— Mufaddal Vohra (@mufaddal_vohra) September 19, 2023
Hotstar’s Importance in Cricket Broadcasting
Despite the hurdles Disney faces, Hotstar remains a significant platform for cricket broadcasting. The platform recently attracted over 2 crore viewers during the Asia Cup 2023, and with the upcoming ICC Cricket World Cup 2023 set to be broadcast on Disney-Star, it is expected to draw substantial audiences. Additionally, the inclusion of free access for mobile device users further enhances its appeal.
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Sources reveal that Disney Star and Zee have already entered into a four-year TV-only agreement for ICC events. This agreement underscores the continued importance of Hotstar in cricket broadcasting and its potential value in the market.
Challenges in Hotstar Sale
Selling Hotstar, even if Disney is considering it, may prove to be a complex endeavor. The platform, with its current sports and entertainment agreements, represents a valuable asset that may come with a significant price tag. Reliance, if pursuing a deal, will need to carefully evaluate the feasibility of such an acquisition.
Disney’s discussions with Reliance regarding the potential sale of Hotstar reflect the evolving dynamics of the media and entertainment industry. While Disney faces challenges in retaining IPL and cricket rights, Hotstar remains a valuable platform for sports and entertainment content. The outcome of these discussions will likely impact the future of Hotstar and its role in India’s media landscape.
