The Walt Disney Company, an American multinational mass media and entertainment conglomerate, reportedly held talks with Reliance Industries Ltd. to sell their OTT (over-the-top) platform Hotstar. The discussions started after Disney failed to acquire the media rights for the 2023 Indian Premier League (IPL) and India cricket matches.
Bloomberg reports that the company has held early discussions with its primary rival Reliance, which has thwarted them by winning the rights for both the IPL and India cricket matches. Disney has lost over 20 million customers from Disney+ Hotstar since missing out on the IPL, and it also failed to renew the contract for HBO content.
The most recent setback was losing out on media rights from the BCCI (Board of Control for Cricket in India). There won’t be any Indian cricket matches on the platform as a result, as Viacom18, owned by Reliance, acquired the rights. Moreover, Disney Star also didn’t place a bid at the online auction. Meanwhile, both Reliance and Disney Star have declined to provide any additional information regarding the discussions regarding a prospective sale that is currently taking place.
“As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” a Reliance spokesperson was quoted as saying by the Economic Times.
Disney Star and Zee have already agreed to a four-year TV-only agreement for ICC events
The Big Bash League (BBL) and all Australian cricket home matches will be broadcast on Disney+ Hotstar. In addition, it is worth noting that, over 2 crore spectators tuned in to watch Indian cricket matches during the recently-concluded Asia Cup 2023. With the ICC Cricket World Cup 2023 broadcast on Disney-Star as well, including free access for mobile device users, it is expected to draw sizable audiences.
According to sources, Disney Star and Zee have already agreed to a four-year TV-only agreement for the ICC events. Notably, it won’t be simple to sell Hotstar, even if Disney is looking to sell it. With the current sports and entertainment arrangements in place, Hotstar will be an expensive asset, and Reliance might only be able to afford a deal like this.