Disney’s tales to continue in India

"Would like to stay’ were the words of Bog Iger, the CEO of Walt Disney, when asked about the company’s plans in India.

But, why were they leaving in the first place?

In July 2023, rumors started circulating that Disney might exit the Indian market due to financial troubles. There were talks that Disney was actively seeking potential buyers for its Disney+ Hotstar business.

Hotstar, a digital streaming platform initiated by Star India, came under Disney's umbrella after the acquisition of 21st Century Fox for $71 billion.

Disney+ Hotstar at one point had more than 6 crore paid subscribers.

But unfortunately, Hotstar lost the broadcasting rights of popular shows like IPL, Game of Thrones, and Succession to Mukesh Ambani’s Reliance, resulting in a substantial loss of audience.

They lost more than 20 million users after losing the broadcasting rights of these shows which became a point of concern for the management and also the reason for all the rumors.

But it is not all over for them.

"We'd like to stay in that market. But we're also looking to see whether we can strengthen our hand and improve the bottom line" Iger said in response to a question about the company's India business during the Q4 2023 earnings call.

They may be considering doing some collaborations or selling some parts of the business that are very poorly performing. But their main service of streaming will not be affected by this.

India is the largest population in the world and every media company wants to have a strong hold on the Indian market. Revenue per user is low due to which many media companies struggle in India but as the number of internet users are increasing the opportunity for these companies is also big to generate massive revenue as the cost of operation and production remains constant.

With Bob Iger's confirmation, Disney+ Hostar will continue to entertain us in the same way as it used to do.

We have to wait and watch what strategies Disney+ Hotstar adapts to gain more subscribers.

Until then…

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