iWorld
Hotstar rolls out attractively-priced Premier League offer
MUMBAI: From time to time, Hotstar, the VOD streaming service from Twenty First Century Fox’s Star India, has been making short-term promotional subscription offers through its payment partners like HDFC, Citibank, PayTM and what have you.
Subscribers have either been getting 100 per cent cash back for one month or two months depending on the subscriber’s card. Including the first free trial month, that effectively gives an annual subscription at anywhere between Rs 1, 800 or Rs 2,000 as compared to the monthly subscription price of Rs 199.
However, since 11 August, it has been running an extremely tempting subscription scheme called the Premier League offer, which has a sticker price of Rs 999 for nine months. The only catch: the payment is non-refundable and has to be made using a debit card and is for a limited period till 12 September.
The idea obviously is to get potential football lovers who have been fence sitting so far to sign up with a massive discount of around 40-50 per cent.
Over the past year, the government has been driving consumers toward digital payments, and also open bank accounts. The Indian consumer – normally wary of piling too much debt – has been loathe to sign up for a credit card. However, opening a bank account normally gets a bank customer a debit card in most cases.
By pushing the Premier League offer, it is hoping to make it a very lucrative proposition for those consumers and others to start using their debit cards.
Hotstar, smart TV apps of which are in the pipeline, currently offers around 50,000 hours of movies and television content together across eight languages, and almost all major sports are covered live.
Even as the research firm KalaGato reported 73 per cent jump in Hotstar’s market share in 10 months, that is expected to spurt further with the addition of the CBS catalogue, and of course Game of Thrones which has been in the news for its crackling seventh season and its leakage from different partners worldwide, including India.
Recently announcing a pipeline with 18 originals from India, Amazon Prime offers perceptibly the most reasonable annual plan at Rs 499. Sun TV’s Sun NXT subscription plans start from Rs 50 per month. Netflix however is expensive – with plans starting at Rs 500 per month, but is reflective of the catalogue size and its target audience, the crème de la crème of Indian consumers.
Amazon Prime has reportedly bagged a market share of just 9.66 per cent, Sony Liv pocketed 6.96 per cent share and Airtel-run Wynk Movies was at 6.36 per cent, the KalaGato report had added.
We reached out to Hotstar CEO Ajit Mohan, but received no response.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
