The Walt Disney Company (NYSE:DIS) fought its way out of a bind in India with a new deal thought to be worth more than US$1.4bn to stream all cricket world cups from 2024 to the end of 2027, after losing the streaming rights to the Indian Premier League (IPL), the most-watched cricket league in India.
Under the four-year deal with the International Cricket Council (ICC), its Disney Star arm will broadcast all ICC tournament in India, including the men's and women's T20 World Cup, Cricket World Cup and Champions Trophy.
No official figures have been reported on the bid, but is expected to exceed the benchmark of US$1.44bn set by the ICC.
Based on the earlier eight-year bid at US$1bn, the current deal (for half the period) is at least 44% higher in dollar terms or 92% higher in rupee terms.
The next T20 world cups for both men and women will be in both 2024 and 2026, with the women's 50-over world cup in 2025 and the men's tournament in 2027. The men's champions tropy will be in 2025 and the women's in 2027.
A record 167mln people watched the ICC's Men's T20 World Cup in 2021, with the ICC saying Disney's deal resulted in "a significant increase in the rights fee from the previous cycle."
Earlier this summer, Disney was criticised after it lost streaming rights to the IPL, potentially dealing it a body blow of around 20mln fewer subscribers, while management this month also faced new pressure from an activist investor in the form of Daniel Loeb.
This was a rare blot in an otherwise clean copybook since the start of the pandemic, with the Burbank-based media giant earlier this month reporting an upward revenue jump of 26% as its theme parks and experiences division reported record results, while its streaming numbers topped Netflix for the first time.
Analysts have long said there are plentiful opportunities for Disney to put further emphasis on its streaming services.
Disney's long-term prospects are heavily dependent on its streaming business, which recently lowered its subscriber growth forecasts to between 215mln and 245mln by fall 2024, down from 230-260mln previously.
Just a few months ago, chief Bob Chapek had described the initial target as "very achievable."
But a large, digital-first audience is becoming increasingly important for Disney+ as subscription growth matures in the US.
Losing out on the IPL deal meant missing out on a league that attracted over 600mln viewers last year, with its recent media package valuing each match at US$15mln.
This it is more than the England Premier League's US$11mln, it is still below the NFL's US$17mln per game average.
Paying subscribers for Disney's HotStar unit, which will stream the ICC's games, are worth only 76c per month compared to US$8 in the US, but India's 1.4bn potential streamers continue to remain a key growth driver.