Disney Explores Strategic Options As Hotstar Loses Subscribers: Report

Disney Explores Strategic Options As Hotstar Loses Subscribers: Report

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According to persons familiar with the situation, the Wall Street Journal reported on Tuesday that Walt Disney is considering strategic alternatives for its Star India company, including a joint venture or a sale.

According to the report, the corporation has discussed strategies to support the India business’ expansion while splitting part of the costs with at least one bank.

The discussions are in their early stages, and it is unknown what options, if any, Disney would choose to pursue, according to WSJ.

As part of its 2019 acquisition of the entertainment assets of 21st Century Fox, Disney purchased Star India and the Disney+ Hotstar streaming service.

According to the Wall Street Journal, Star’s total income for the fiscal year ending September 2023 is anticipated to fall by almost 20% to just under $2 billion. Its earnings before interest, taxes, depreciation, and amortisation are projected to drop from around $200 million last year by about 50% during that time.

According to the source, Hotstar is anticipated to lose 8 million to 10 million subscribers in its third fiscal quarter.

Numerous TV channels are part of Star India, which this year changed its name to Disney Star. It also owns a stake in a film production company.

Disney is reducing expenses along with its streaming competitors and the broader media sector as macroeconomic headwinds affect its ad income and subscriber growth.

The corporation announced in February that it would slash 7,000 employees as part of a massive restructure designed to decrease expenses by $5.5 billion.

A request for comment from Reuters was not immediately answered by Disney.

Tuesday’s share price for the corporation increased 1.6%.

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