Disney explores strategic options for its business in India: Report

Walt Disney is considering options for its Star India business, including a joint venture or sale, as it looks to help the India business grow and reduce costs. The talks are in the early stages and no decisions have been made, according to a WSJ report.
The company has talked to at least one bank about ways to help the Indian business grow, while sharing some of the costs, according to the report.
Disney’s India business comprises Disney Hotstar streaming service and Star India, which it took over when it acquired the entertainment assets of 21st Century Fox in 2019.
Star India’s revenue is expected to drop around 20% this year to slightly less than $2 billion.
Its earnings before interest, taxes, depreciation, and amortization are to fall roughly 50% for the fiscal year ending September 2023. Disney’s Hotstar streaming service is also expected to lose subscribers. According to the WSJ, Hotstar is expected to lose 8 million to 10 million subscribers next quarter.
In February, the company said it would cut 7,000 jobs as part of an effort to save $5.5 billion in costs in a sweeping restructuring of the company.
Star India, which was rebranded as Disney Star last year, encompasses dozens of TV channels and a stake in a movie production company.
In May, Walt Disney streamed losses by $400 million from the prior quarter but also shed subscribers. Most of the defections came from Disney Hotstar after it lost streaming rights to Indian Premier League cricket matches. Disney also shed 300,000 customers in the United States and Canada, where it raised prices last December.
The entertainment giant plans to expand its streaming offerings by year’s end with a new app that combines the family-friendly Disney and the Hulu general entertainment service, Chief Executive Bob Iger said.
Iger, who came out of retirement in November to tackle the company’s challenges, announced a revamp in February that included a promise of eliminating $5.5 billion in costs, partly through 7,000 job cuts.
Disney’s shares closed up 1.6% on Tuesday.

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