The Reliance-Disney (DIS) joint venture is reportedly ditching free streaming for matches, which might not seem like cricket to fans of the Indian Premier League.
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Looking at a Hybrid Subscription Model
According to a report in Reuters, Reliance and Disney are looking at adopting a hybrid model instead. This means that a subscription will kick in – or in this context, bowl in – after “content consumption” reaches a threshold. Put simply, the more runs and wickets you watch, the more you pay. “Once a user develops affinity to the platform, starts watching free, becomes loyal … the subscription will kick in then,” a source told Reuters, adding that each user’s subscription could start at a different point in time.
The joint venture, which was formed when Indian billionaire Mukesh Ambani’s Reliance and Walt Disney combined their India media assets in an $8.5 billion merger last year, is also said to be considering launching a new rebranded streaming app. The plans are that this will start at the price of 149 rupees, which is roughly $2.
IPL is a Big Hitter
The IPL is the richest cricket competition in the world, with a brand value of around $12 billion. Four of its teams – Chennai Super Kings, Mumbai Indians, Royal Challengers Bengaluru, and Kolkata Knight Riders – are worth over $100 million. The 2024 Indian Premier League (IPL) season was watched by 620 million viewers in cricket crazy India, but it is also popular elsewhere such as the U.K. The Reliance-Disney venture runs more than 100 TV channels and streaming apps in India’s $28-billion media and entertainment market, where it also competes with Netflix and Amazon Prime, among others. It covers IPL cricket and football.
Is DIS a Good Stock to Buy?
On TipRanks, DIS has a Strong Buy consensus based on 19 Buy and 6 Hold ratings. Its highest price target is $147. DIS stock’s consensus price target is $128.04 implying an 16.94% upside.
