Hotstar to be sold to JioCinema? Walt Disney holds talks with Reliance over sale of India business after losing Indian cricket broadcast rights

Walt Disney is reported to be exploring options for its India streaming and television business following a loss in streaming rights for the Indian Premier League cricket tournament.

Taking strategic measures, the US entertainment giant is now in initial talks with potential buyers including Mukesh Ambani's Reliance Industries, as per sources privy to the matter.

Disney-Reliance: Scope of a potential deal

According to the insiders, the discussions being held are seemingly flexible and range from a deal for the complete Disney Star business to a piecemeal trade involving a mix of Disney's assets, notably including sports rights and regional streaming service Disney+ Hotstar.

The strategic options being mulled over have come to light after Bloomberg News reported that Disney lost the Indian Premier League cricket tournament streaming rights to Viacom 18, a tie-up between Paramount Global and Reliance.

While it's evident that talks are underway, according to those associated with the matter; it's worth noting that there may still be no concrete deals as of now. Disney might just choose to hold onto its assets even though it has approached Reliance about buying a stake in the business.

As part of their future strategy, Disney Star, despite experiencing a drop in subscriber numbers post the IPL streaming rights loss, has secured the television rights through to 2027.

Reliance's Stance and Future Plans

On the other hand, Reliance has made it clear that the company evaluates numerous opportunities on an ongoing basis but declined further comment on this matter. However, in an interesting development, JioCinema, backed by Reliance, pulled in a record 32 million concurrent viewers in May for the IPL final, which was streamed free on the platform.

Adding to its portfolio, JioCinema has commenced charging for some content after securing a multi-year agreement to stream Warner Bros. Discovery's exclusive content in India. This clearly shows that Reliance is making strategic moves in the entertainment sector.

This series of events constitutes a significant development for Walt Disney, Reliance Industries, and the overall Indian streaming and television industry. An eventual deal holds the potential to significantly influence the dynamics of India's burgeoning entertainment industry.

However, with discussions still underway and no concrete outcomes as of yet, we are all set for an exciting time ahead in the race for the streaming and television crown in India.