Why Disney's Mega Cricket Broadcast Deal In India Is Proving To Be Less Than A 'Masterstroke'

This story was first published on the Benzinga India portal.

Walt Disney Co's (NYSE: DIS) Indian arm, Disney Star. announced its decision to license the TV broadcasting rights for International Cricket Council Men's and U-19 global events to Zee, a domestic broadcaster, for the 2024-27 cycle in August 2023, yet there’s been no forward movement on the arrangement.

What Happened?  Disney Star won the broadcast and digital rights to the International Cricket Council's (ICC) global events in India for the 2024-27 cycle but chose to license a portion of these rights to Zee Entertainment Enterprises last year, reported India's News18 TV channel.

In a move hailed as a “masterstroke” by industry experts, Disney Star has retained digital rights for ICC Men's and U-19 tournaments, and both digital and broadcast rights for ICC women's events for the Indian market.

Disney Star’s choice to license part of the rights, which reportedly cost them $3.04 billion, to Zee is seen as a strategy to both reduce the financial burden of the deal and maximize the potential of the digital component.

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However, progress on the arrangement has stalled, as a proposed merger between Zee and Sony for the broadcast rights has yet to occur. Additionally, Zee has not provided Disney-Star with a bank guarantee for the deal. Currently, only a contract between the ICC and Disney Star and a joint press release from Disney and Zee outlining the new arrangement exist.

Despite these complications, Disney-Star is under increasing pressure, as they will be the ones to pay the ICC regardless of the outcome between Disney-Star and Zee, and then Zee and Sony.

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