Here's Why KeyBanc Considers Disney's IPL Rights Win As Neutral Outcome

  • KeyBanc analyst Brandon Nispel sees Walt Disney Company DIS winning TV IPL rights as a neutral outcome for DIS.
  • Nispel would have liked DIS to pursue Digital rights over TV rights, given the ongoing secular challenges of PayTV. 
  • However, there appear to be some benefits due to the importance of IPL to the Star ecosystem. 
  • On the one hand, DIS controls the rights to the IPL property that likely should have the highest viewership implying its ability to monetize the rights fairly effectively through advertising. 
  • Additionally, DIS can use the more extensive Pay-TV base of customers as a gross add funnel for Disney+ Hotstar. 
  • Lastly, Disney+ Hotstar will likely have some incremental churn as 3- month/annual plans lapse though long-term churn for Disney+ Hotstar should be less seasonal around the completion of IPL. 
  • On the other hand, TV viewership is shifting broadly from linear Pay TV to streaming, where it remains likely that the digital subscriber base will be greater than the Pay TV base by the end of the contract. 
  • He appreciated DIS's unwillingness to be overly aggressive on the digital rights, given DIS likely has at least one year of data on Disney+ Hotstar IPL viewership, which probably puts it in a more informed position than competing bids. 
  • He sees rights for Viacom18 as slightly positive to Paramount Global PARA.
  • India will likely be incremental to Paramount+'s 100 million subscriber target by 2024. 
  • Price Action: DIS shares traded higher by 1.32% at $95.46 on the last check Wednesday.

Posted In: BriefsAnalyst ColorNewsAnalyst RatingsTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.