Now Reading: Disney’s Reliance JV loss narrows to $44 mn in June quarter
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Disney’s Reliance JV loss narrows to $44 mn in June quarter
Walt Disney’s share of losses from its Indian joint venture with Reliance Industries narrowed to $44 million in the quarter ended June 27, down from $50 million a year earlier, reflecting improving…
Walt Disney’s share of losses from its Indian joint venture with Reliance Industries narrowed to $44 million in the quarter ended June 27, down from $50 million a year earlier, reflecting improving finances at the merged entity JioStar. For the nine months to June, Disney reported a $136 million loss from the venture, compared with $186 million a year ago.
Disney owns 37% of JioStar, formed in November 2024 by merging Disney’s Star India and Disney+ Hotstar with Reliance-controlled Viacom18. JioStar reported a sharp turnaround in FY26, with revenue up 46.5% to Rs 30,819 crore and profit after tax surging to Rs 3,145 crore from Rs 18 crore in FY25. Reliance holds 56% and Bodhi Tree Systems 7% of the venture.
JioStar also reduced its provision for onerous sports contracts to Rs 17,742 crore from Rs 25,760 crore a year earlier, with no fresh provisions made. The company said certain sports-event contracts remain classified as onerous because expected customer revenues may fall short of costs. Disney’s year-earlier results were also weighed down by impairments, including a $185 million charge for its investment in Tata Play.
Indian Opinion Analysis
The narrowing of Disney’s JV loss tracks a rare swing to profitability in India’s fiercely competitive media market, where deep-pocketed players have long run sports- and streaming-led operations at a loss. JioStar’s reduced provision for onerous sports contracts signals that cricket rights, the costliest item in Indian broadcasting, are being priced more realistically. The JV now commands about 40% of television viewership and a dominant share of digital sports audiences, giving it bargaining power with advertisers. The next pressure point will be subscription pricing: JioStar has kept tariffs low to gain market share, and its ability to raise those without triggering churn will determine whether the profit swing is sustainable. Disney’s 37% stake also means it shares downside if Reliance pushes for aggressive investment in new content deals.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
