MUMBAI: Star India, whose business includes the Disney+Hotstar streaming service, is seeking a new joint venture partner or might be sold.
According to a report in the Wall Street Journal, the company is in the process of identifying growth opportunities for the India business and is in talks with at least one bank to find a partner. The conglomerate’s India business consists of the popular Disney+ Hotstar streaming service and Star India, which came under Disney’s ownership following its acquisition of 21st Century Fox in 2019.
Although the talks are still in the early stages, it remains unclear which specific options Disney might pursue in relation to its Indian operations. The conglomerate’s India business consists of the popular Disney+ Hotstar streaming service and Star India, which came under Disney’s ownership following its acquisition of the entertainment assets of 21st Century Fox in 2019, the report said.
The WSJ report indicates that Star India’s overall revenue for the fiscal year ending September 2023 is anticipated to decline by approximately 20 per cent, settling at just under $2 billion. Additionally, its earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to decrease by roughly 50 per cent compared to the previous year, falling from around $200 million. The report further reveals that Hotstar is expected to experience a loss of 8 million to 10 million subscribers in its fiscal third quarter. These developments underscore the challenges faced by Star India, which was rebranded as Disney Star in the previous year.
