2023 Cricket World Cup Results in Disney Star's $315 M Loss

ICC 2023 Cricket World Cup Results in Disney Star’s $315 Million Loss

Disney Star's sports division showed a 144% increase in operational loss from $129 million (Rs 1,057 crore) in the same quarter last year to $315 million (Rs 2,583 crore) as of December 2023.

(Cricket News) According to The Walt Disney Company’s quarterly results released on Thursday, the operating loss for Disney Star’s sports segment increased 144% to $315 million (Rs 2,583 crore) as of December 2023 from $129 million (Rs 1,057 crore) in the same quarter the previous year due to higher rights costs from airing the ICC Cricket World Cup.

In order to compete with Reliance Industries-backed JioCinema, which streamed the 2023 IPL cricket matches for free, Disney Star, which held the ICC TV and digital media rights until 2023, broadcast the matches on its Star network of channels and made them available for free streaming on its Disney+ Hotstar app.

According to the company’s first quarter results, Star India’s revenue in the sports segment rose 71% to $399 million during October-December 2023 from $233 million in the year-ago quarter, but its operating loss skyrocketed to $315 million from $129 million during that time.

The ICC Cricket World Cup, which was aired in the current quarter rather than the ICC T20 World Cup in the previous year’s quarter, resulted in (a) an increase in programming and production costs due to higher average costs per match and more matches aired and (b) advertising revenue growth due to more units delivered and an increase in average viewership, partially offset by a decrease in rates.

The Walt Disney Company’s overall sports revenue increased 4% to $4.8 billion, but its overall operating loss in sports in Q1 FY24 declined 37% to $103 million from $164 million in the same fiscal year.

In the earnings call, the management stated, “(Disney’s overall) Sports operating income improved versus the prior year due to strength at ESPN, partially offset by lower results at Star India, driven by higher rights costs from airing of the ICC Cricket World Cup.

“The tournament, which happens once every four years, was estimated to have brought in a total of Rs 2,000–Rs 2,200 crore in combined ad revenue on TV and digital platforms, up from Rs 1,350 crore in the 2019 edition.

After a 12-year break, India hosted the highly anticipated tournament for the first time as the sole host; previously, it had held it with Pakistan in 1987, with Sri Lanka and Pakistan in 1996, and with Bangladesh and Sri Lanka in 2011. Australia were victorious in the 2023 tournament.