Disney Is Looking At Strategic Options For Its India Businesses
While Disney has had its share of woes with Disney+ in North America, any struggles here pale in comparison to the company’s struggles in India.
The company’s India business comprises of Disney+ Hotstar, their flagship streaming service, and Star India, which it took over when it acquired the assets of 21st Century Fox in 2019.
Star India, which was rebranded as Disney Star last year, encompasses dozens of TV channels and a stake in a movie production company.
Disney Is Struggling In India
According to reports, Star’s overall revenue for the fiscal year ending in September 2023 is expected to drop around 20% to less than $2 billion. Additionally, the service’s earnings before taxes, depreciation, and amortization are expected to fall 50% in the same period from about $200 million last year.
Individually, Hotstar is expected to lose 8 million to 10 million subscribers in the fiscal third quarter,
Disney Exploring Its Options
In order to solve its India woes, Disney is expected to explore strategic options for its Star India business. These options include a joint venture or sale.
The company has repeatedly talked to at least one bank about ways to help its India business grow while sharing some of the costs.
The talks at Disney are reportedly in the early stages. At this time, it is unclear which options, if any, Disney may pursue.
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