Walt Disney’s streaming entertainment segment, comprising Disney+ and Hulu, saw a maiden profit of $47 million in Q2. However, it is expected to face a loss in Q3 due to the ICC digital rights held by Disney+ Hotstar. The CFO of Walt Disney, Hugh Johnston, stated that the loss is primarily due to Hotstar’s cricket rights. Disney+ is not expected to experience significant subscriber growth in Q3, but growth is anticipated to return in Q4. The streaming portfolio, including entertainment and sports, reported an operating loss of $18 million in the quarter. Despite the expected weaker Q3, Disney CEO Bob Iger mentioned that streaming will be a growth driver for the company in the future. Star India, the parent company of Disney+ Hotstar, has paid $3 billion for the ICC media rights until 2027. However, the failure of the merger deal with Sony Pictures Networks India led Zee Entertainment to back out of the expensive cricket rights deal, resulting in arbitration proceedings. The likely losses from the ICC media rights deal impacted Disney’s valuation. Walt Disney agreed to merge Viacom18 with Star India in a deal valued at $8.5 billion. Once the merger is complete, Star India will be de-consolidated from Disney’s global earnings. In Q2, while Walt Disney’s streaming business turned a profit, Disney+ Hotstar saw a drop in subscriber base and average monthly revenue per paid subscriber. The decrease in subscriber base and revenue was due to lower advertising revenue and a higher mix of subscribers from lower-priced markets.