Disney might lose 20 million subscribers after losing the Indian Premier League (IPL) digital media rights bid to Viacom 18, a joint venture between TV18 and Paramount Global. The BCCI sold the media rights for the next five-year cycle (2023-27) of the IPL at a staggering Rs 48,390 crore.
India and other South Asian countries constitute roughly 50 million of Disney subscribers worldwide. The figures account for more than one-third of the company’s customer shares, thanks to the product Disney+ Hotstar, which caters to the cricket viewing experience of these regions.
Since the inception of Disney+ in 2019, the product has managed to attract 138 million subscribers on board. The platform became an instant hit on its opening day, breaching the 10-million subscriber mark. In 2020, Bob Chapek, the company's chief executive officer, made an overambitious claim of tripling the subscriber figures in coming four years.
Based on the findings of Media Partners Asia, Disney+ might stutter to reach its goal of 260 million of worldwide subscribers by 2024.
"IPL drives customer acquisition. It's regarded as entertainment, not just sports by Indian households – women and men."Vivek Couto, Executive Director, Media Partners Asia
However, not everything looks gloomy for Disney Star, as they have managed to cling on to the television rights of the mega-event at a cost of Rs 23,575 crore. The company operates over 70 channels in India and it is looking to push its digital product, DIsney+ Hotstar via them.
A statement by the company reads:
"We are pleased to extend our association with the Indian Premier League and look forward to offering the next five seasons across our portfolio of television channels. We made disciplined bids with a focus on long-term value. We chose not to proceed with the digital rights given the price required to secure that package. IPL is an important component of our portfolio of television channels in India, providing an incredible opportunity for us to showcase The Walt Disney Company’s powerful global brands and iconic storytelling, as well as Disney Star’s impressive collection of local original content, to millions of viewers in India.”
After an underwhelming quarter last year, Disney shares have nosedived by 39 percent. Barclays expert Kannan Venkateshwar, has stated that a lower forecast for the company may not harm the stock because the investors have already taken that into consideration.
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