With Disney+ Hotstar suffering losses after failing to acquire IPL digital and India Cricket bilateral rights, Disney is in talks with potential suitors, including Reliance, to sell the Hotstar business.
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Missing out on IPL digital rights and BCCI media rights deal proved costly for broadcasting giants
All is not well with the Disney star. Missing out on Indian Premier League (IPL digital rights) and BCCI media rights deals has cost the broadcast giants dearly. According to media reports, the situation is such that Disney-Star is looking to sell its OTT platform Hotstar to potential buyers.
According to Bloomberg, the company has held preliminary talks with its main rival Reliance, which has overtaken the company in winning both IPL and India cricket matches.
Hotstar has lost over 20 million customers
Since missing out on the IPL, Hotstar has lost over 20 million subscribers to Disney+ Hotstar, which has not renewed the deal for HBO content.
Disney+ Hotstar shocked by BCCI losing media rights
The latest blow is BCCI losing its media rights. As a result, there will be no Indian cricket matches on the platform. Viacom18 picked up the rights. Actually, Disney-Star did not bid on the e-auction at all.
While Hotstar has refused to comment on any ongoing talks for a possible sale, Reliance has also refused to disclose any further details.
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Reliance spokesperson –
“As a policy, we do not comment on media speculations and rumors. Our company evaluates various opportunities on an ongoing basis,” a Reliance spokesperson said in a statement to The Economic Times.
Disney-Star Sports Properties
- Indian Premier League (TV)
- ICC media rights (TV and digital)
- Australia Cricket Rights (TV & Digital)
- Asia cup cricket
- Premier League
- Pro Kabaddi League
- Wimbledon
Big Bash League and all Australia cricket domestic matches to be streamed on Disney+Hotstar
Despite IPL and India losing cricket matches, Hotstar still has a lot to offer on the platform. Apart from ICC events, the Big Bash League and all Australia cricket domestic matches will be on Disney+Hotstar.
Disney-Star also unveils a blockbuster Asia Cup 2023
Disney-Star also presented a blockbuster Asia Cup 2023, which saw over 2 crore viewers watch India’s cricket matches. The World Cup 2023 is also on Disney-Star, including free for mobile users, looking set to garner good viewership that could keep the platform with Disney-Star rather than selling out.
Difficult to sell Hotstar?
Disney-Star has already signed a deal with Zee for ICC events for the next four years (TV only). And even though Hotstar is looking to sell Hotstar, it won’t be easy. The merger with Viacom18 could be game-changing, but the declining digital business, as well as $4 billion in sports rights liabilities, could derail any potential deal, according to the Economic Times.
Additionally, Hotstar will be an expensive asset with the existing sports and entertainment deals. So, apart from Reliance-backed Viacom18, not many people can afford this kind of deal.
