Television

Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

Star generated about $150 million of operating income in the third quarter last year.

Star India

MUMBAI: The purchase of 21st Century Fox, which was aimed at helping Walt Disney Company's future plans, is causing initial pain to the Bob Iger-led media conglomerate. In its fiscal third quarter result for 2019, Disney missed earnings expectations partly because of the worse-than-expected performance of Fox assets. Star India, the newly acquired premium property of Disney after the completion of the merger, was not able to live up to expectations.

“We estimate Star generated about $150 million of operating income in the third quarter last year. Star's results this quarter came in well below our expectations and were driven primarily by a meaningful step-up in rights cost for the quadrennial Cricket World Cup and the Indian Premier League as revenue growth was more than offset by the incremental rights expense,” Disney Senior EVP and CFO Christine McCarthy said.

Despite the initial challenges, Disney CEO Bob Iger highlighted the benefits of the deal such as the addition of Star and Hotstar to the Disney portfolio giving a significant presence in India. He added that it is a huge market with interesting dynamics notably, a rapidly rising middle class with a strong and growing appetite for media, especially sports. He also noted that Hotstar’s broad array of premium sports rights will serve it well over the next five years especially as it expands the service into markets across Southeast Asia.

“It was the quadrennial Cricket World Cup, of course. They have their Indian Premier League, which is ongoing, but this is once every four years for the World Cup. There were a couple of significant games that were rained out. They have insurance coverage for some of those, but any proceeds would be in future periods. And there was also some weakness in advertising revenue that was related to the local advertising market,” Iger commented on Star’s performance in India.

Disney also continued to spend big on streaming services such as Disney+, ESPN+, the platforms where it sees its future. Moreover, the firm also took full operational control of streaming platform Hulu, which further affected the balance sheet.

Disney’s earnings per share (EPS) for the quarter decreased 28 per cent to $1.35 from $1.87 in the prior-year quarter where it was expected $1.74 by the analysts. Total revenue stood at $20.2 billion against the consensus estimate for $21.4 billion.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/06/chrome.jpg?itok=PS7RNCGf
Sports becomes top gainer in Chrome DM week 30

Sports genre has become the top gainer in week 30, 2020 of Chrome Data Analytics and Media data. The genre grew by 8.20 per cent. In this genre, DD Sports gained highest OTS with 96.6 per cent in all India 1 lakh+ market.

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/zee_0.jpg?itok=Y0E9pLuP
ZEE Keralam introduces SaReGaMaPa Keralam stickers, viewers show their support to their favourite contestants

NEW DELHI:  Into less than a year and a half of running, entertainment channel ZEE Keralam, has carved a space in the minds of the Malayalee audience and their first music reality show, SaReGaMaPa Keralam, has made it even closer to people’s hearts. The show since its inception has shown steady...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/hungama.jpg?itok=xr6HQzJ8
Hungama partners with telecom operators in Switzerland, Poland, Saudi Arabia and other countries

MUMBAI: Hungama, a digital entertainment company had announced strategic partnerships with leading telecom operators in Switzerland, Poland, Saudi Arabia and other countries, further strengthening its presence in international markets. These operators include the three largest telecom providers in...

Television TV Channels Music and Youth
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/zee.jpg?itok=V4uf5J6I
Zee Tamil to air its fiction shows 7 days a week!

NEW DELHI: Zee Tamil, one of Tamil Nadu’s General Entertainment Channel has been consistently entertaining its viewers over the last decade by presenting them with shows that have varied content and novel concepts.  Over the years, the viewers have come to be deeply connected and invested with the...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/gk.jpg?itok=N7F70uIk
Indian television premiere of psychotic thriller ‘The Lodge’ only on &flix, &PrivéHD and Zee Café

MUMBAI: Repent and all your sins will be forgiven! Directed by Veronika Franz and Severin Fiala, comes an extreme psychological thriller that will make you think that everything is fine up until the moment you realise it’s all an illusion. The lingering fear that wraps you in cold chills usually...

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/sunil.jpg?itok=GlscJm3E
Indiantelevision.com’s virtual Onam conclave: BARC India CEO Sunil Lulla on Kerala ad market

NEW DELHI: Starting the first-ever virtual conclave by Indiantelevision.com, “The Comeback of Kerala: Onam Returns” focuses exclusively on Kerala’s ad market and predictions for its supposed uptake in the upcoming festive season. BARC India CEO Sunil Lulla shared some interesting insights into the...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/aak.jpg?itok=y-ak-5PW
A+E Networks | TV18 appoints Karishma Dhawan as revenue head

Karishma Dhawan will be taking over as the revenue head at A+E Networks | TV18 and will be in charge of the network’s factual entertainment cluster. She will be reporting to A+E Networks | TV18 managing director and CEO-broadcast for Network18 Avinash Kaul.

Television TV Channels People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/zee-am.jpg?itok=-R_1L2ef
Zee Anmol claws to top place in Free Across Genres channels in week 29

Television viewership dipped slightly in week 29 of 2020 (Saturday, 18 July 2020 to Friday, 24 July 2020, week or period under review) according to Broadcast Audience Research Council Research on India (BARC) weekly data as compared to the previous week.

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/08/05/cont.jpg?itok=uskoa1n4
"Time to discuss IP ownership": Contiloe Pictures’ Abhimanyu Singh

Television producers, after a long hiatus, have started shooting with limited cast and crew members. However, taking care of the team and the implementation of other SOP measures has escalated production cost.

Television TV Channels People

Sign up for our Newsletter

subscribe for latest stories

* indicates required