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Disney (DIS) & Reliance Sign Non-Binding Deal for Indian Media
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Disney (DIS - Free Report) and Reliance Industries have agreed on a non-binding term sheet to merge their media operations in India. As part of the merger, Reliance is set to own 51% through a combination of shares and cash, while Disney will retain the remaining 49%.
This arrangement grants more control to the Reliance group. The deal is expected to be completed by February, with Reliance aiming to finish the process by the end of January, subject to regulatory approvals.
Upon completion, the merger would create one of India's largest entertainment conglomerates, competing with television and streaming giants.
Reliance, through its media and entertainment unit Viacom18, currently operates numerous TV channels and the JioCinema streaming app. Reliance is offering free streaming of the Indian Premier League cricket tournament, a move that has drawn users away from Disney's Hotstar in recent quarters.
Disney has been exploring options, including a potential sale or joint venture for its India business, encompassing multiple TV channels. The proposed merger would consolidate operations under Reliance's Viacom18, allowing it to gain control of Star India through a stock swap.
India, being one of the largest and fastest-growing markets, is attractive for streaming services. Disney has become a popular streaming service provider in the streaming market. The company is producing localized content to attract more viewers.
The Indian pipeline of content includes titles like Periloor Premier League, The Legend Of Hanuman Season 3 and Karmaa Calling. These notable releases are expected to aid the company’s subscriber growth in the upcoming quarters.
The Zacks Consensus Estimate for DIS’ fiscal 2024 paid subscribers on Disney+ is pegged at 157.13 million, indicating year-over-year growth of 4.61%. The consensus estimate for earnings is pegged at $4.38 per share, indicating year-over-year growth of 16.49%.
A forthcoming Malayalam series titled Perilloor Premier League, featuring Nikhila Vimal and Sunny Wayne in the lead roles, is scheduled to premiere on Jan 5. Directed by Praveen Chandran and produced by E4 Entertainments, this comedic entertainer promises an engaging experience for the audience.
The highly awaited series, The Legend of Hanuman, has been confirmed for its third season, showcasing the timeless essence of Indian mythological heritage and limitless magic. The series is scheduled to release on Jan 12.
Disney recently revealed its latest series, Karmma Calling, featuring actor Raveena Tandon as the protagonist. The show is set to premiere on the streaming platform on Jan 26, 2024, and is inspired by the well-known American series Revenge. The show is produced by ABC Signature, a division of Disney Television Studios.
Shares of Disney, which currently carries a Zacks Rank #5 (Strong Sell), have gained 4.8% year to date compared with the Zacks Consumer Discretionary sector’s 16.2% rise due to tough competition from Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) Prime and Sony (SONY - Free Report) .
While Amazon and Netflix adopted a subscription-based model in India, requiring users to pay a significant fee for access, Disney took a different approach. DIS set its subscription plans at a low cost of Rs. 399/year and incorporated ads into the content. This pricing strategy was essential for the company, considering the price sensitivity of the audience, with ad revenues compensating for the lower subscription fees.
DIS' success has influenced Netflix in India to announce its intention to introduce advertisements on the platform.
The Sony Liv application has become a prominent choice for streaming kids' content, WWE, live events and cinematically enriched shows in India. The platform consistently adds new content, including Hollywood and Bollywood series, movies, dramas and soaps, on a weekly basis. Noteworthy features, such as a seamless non-loading option, "continue watching" feature and reliable playback slot, are maintained for user convenience.
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Disney (DIS) & Reliance Sign Non-Binding Deal for Indian Media
Disney (DIS - Free Report) and Reliance Industries have agreed on a non-binding term sheet to merge their media operations in India. As part of the merger, Reliance is set to own 51% through a combination of shares and cash, while Disney will retain the remaining 49%.
This arrangement grants more control to the Reliance group. The deal is expected to be completed by February, with Reliance aiming to finish the process by the end of January, subject to regulatory approvals.
Upon completion, the merger would create one of India's largest entertainment conglomerates, competing with television and streaming giants.
Reliance, through its media and entertainment unit Viacom18, currently operates numerous TV channels and the JioCinema streaming app. Reliance is offering free streaming of the Indian Premier League cricket tournament, a move that has drawn users away from Disney's Hotstar in recent quarters.
Disney has been exploring options, including a potential sale or joint venture for its India business, encompassing multiple TV channels. The proposed merger would consolidate operations under Reliance's Viacom18, allowing it to gain control of Star India through a stock swap.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney’s Indian Pipeline to Aid Subscriber Growth
India, being one of the largest and fastest-growing markets, is attractive for streaming services. Disney has become a popular streaming service provider in the streaming market. The company is producing localized content to attract more viewers.
The Indian pipeline of content includes titles like Periloor Premier League, The Legend Of Hanuman Season 3 and Karmaa Calling. These notable releases are expected to aid the company’s subscriber growth in the upcoming quarters.
The Zacks Consensus Estimate for DIS’ fiscal 2024 paid subscribers on Disney+ is pegged at 157.13 million, indicating year-over-year growth of 4.61%. The consensus estimate for earnings is pegged at $4.38 per share, indicating year-over-year growth of 16.49%.
A forthcoming Malayalam series titled Perilloor Premier League, featuring Nikhila Vimal and Sunny Wayne in the lead roles, is scheduled to premiere on Jan 5. Directed by Praveen Chandran and produced by E4 Entertainments, this comedic entertainer promises an engaging experience for the audience.
The highly awaited series, The Legend of Hanuman, has been confirmed for its third season, showcasing the timeless essence of Indian mythological heritage and limitless magic. The series is scheduled to release on Jan 12.
Disney recently revealed its latest series, Karmma Calling, featuring actor Raveena Tandon as the protagonist. The show is set to premiere on the streaming platform on Jan 26, 2024, and is inspired by the well-known American series Revenge. The show is produced by ABC Signature, a division of Disney Television Studios.
Shares of Disney, which currently carries a Zacks Rank #5 (Strong Sell), have gained 4.8% year to date compared with the Zacks Consumer Discretionary sector’s 16.2% rise due to tough competition from Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) Prime and Sony (SONY - Free Report) .
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While Amazon and Netflix adopted a subscription-based model in India, requiring users to pay a significant fee for access, Disney took a different approach. DIS set its subscription plans at a low cost of Rs. 399/year and incorporated ads into the content. This pricing strategy was essential for the company, considering the price sensitivity of the audience, with ad revenues compensating for the lower subscription fees.
DIS' success has influenced Netflix in India to announce its intention to introduce advertisements on the platform.
The Sony Liv application has become a prominent choice for streaming kids' content, WWE, live events and cinematically enriched shows in India. The platform consistently adds new content, including Hollywood and Bollywood series, movies, dramas and soaps, on a weekly basis. Noteworthy features, such as a seamless non-loading option, "continue watching" feature and reliable playback slot, are maintained for user convenience.