FOX DEAL SET TO MAKE DISNEY INDIA’S BIGGEST BROADCASTER
NEWDELHI: The takeover of 21st Century Fox’s film and TV business by Walt Disney means that Murdoch-owned Star India’s businesses, including 49 entertainment channels and 10 sports channels would be absorbed by Disney along with its digital streaming platform Hotstar.
Not just that, Disney would also acquire Star’s stake in direct-to-home platform Tata Sky in India. This would catapult Disney, currently known for its children’s channels and distribution of Hollywood films, into India’s biggest broadcaster.
In investor calls, 21st Century Fox has forecast that Star will report $500 million in operating profit in India in the year to June 2018.
The deal announced on Thursday bodes well for the India market, said experts.
“This is the mother of all media and entertainment deals and will overnight make Disney the number one network in the country. Both Star and Disney will complement each other with missing portfolios in each others’s offerings,” said Raj Nayak, chief operating officer of Viacom18.
“The combined entity can bring many synergies to the table and leverage advertising, distribution, licensing and over-the-top (OTT) revenues besides saving costs on some fronts. The merger will make Disney a formidable powerhouse in the region,” he added. In his previous roles, Nayak has worked with Star as well as consulted with Walt Disney for its entry strategy into India.
Currently, Disney operates eight children and youth entertainment channels in India, namely Disney Channel, Disney Junior and Hungama TV.
It operates Bindaas and film channels UTV Action and UTV Movies, the channels it acquired from Ronnie Screwvala’s UTV Software Communications Ltd for $454 million in the year 2012.
Ten days ago, 21st Century Fox named Uday Shankar, chairman and chief executive of Star India Pvt. Ltd, as president, 21st Century Fox for the Asia region.
Meanwhile, Disney is currently led by country head Abhishek Maheshwari in India.