The company Novi Digital Entertainment Pvt Ltd, which manages the popular video streaming platform in India Hotstar, has secured Rs 1,113.76 crore from its parent organizations Star India Private Limited, and Star US Holdings Subsidiary LLC, USA.
This report is confirmed by financial data accessed by the business intelligence platform, Tofler. Of this, the company Star India Pvt Ltd has bought shares worth Rs 869.47 crore, while the remaining shares worth Rs 244.29 crore have been purchased by Star US Holdings Subsidiary LLC, USA.
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The newly rebranded Disney+Hotstar video streaming co-operation has ammased Rs 1,113.76 crores in lieu of approximately 278 crore shares.
The funding comes after the Disney Company announced that Hotstar has approximately 8 million paid users in India. This is the second important funding for the video streaming company this year.
In March, Star India and Star US holdings had spent Rs 1,066 crore ($153 million) in Hotstar, right before the IPL (Indian Premier League) tournament which is held in April every year. But, this year due to the COVID-19 pandemic, the tournament has been cancelled.
Hotstar was launched in the year 2015 and it has emerged as one of the best over-the-top (OTT) platforms in India. According to industry surveys, most of Hotstar’s growth is due to sports, including the broadcast of cricket matches.
With the Disney Company recently working on Disney+ in India, in partnership with Hotstar, it is considered that the move will give an edge to the streaming platform to compete against big names like Netflix and Prime Video by Amazon.