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Disney Is Trying To Salvage Its Indian Dreams

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The next three weeks could determine Walt Disney’s future in the world’s most populated country.

The Star India network was one of the crown jewels Disney (DIS) acquired when it paid $71 billion to Rupert Murdoch for most of 21st Century Fox five years ago.

With that mega acquisition, the Magical Kingdom acquired Fox’s business in India, obtaining a new audience of over 700 million people in the South Asian country, which is one of the world’s most active media markets.

However, Disney has not had the happily ever after it hoped for. In a late-year results call, CEO Bob Iger admitted that “parts of that business [in India] are challenged for us.”

The House of Mouse was hit most hard in 2022, when it lost the internet rights to stream the immensely popular Indian Premier League (IPL) cricket matches to billionaire Mukesh Ambani’s company.

The US corporation is now attempting to save its India ambition.

Disney and Ambani’s Reliance Industries are discussing merging their Indian media operations to build an entertainment juggernaut in which the Indian tycoon would have the upper hand.

According to Reuters, the corporations have hired lawyers and begun antitrust investigations into the merger. The Economic Times claimed in December that Ambani’s energy-to-telecom company would own 51%, with Disney holding the remaining 49%, citing unnamed sources. According to the Indian publication, the merger will likely be completed by next month.

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Disney did not respond to CNN’s request for comment, while Reliance declined to comment.

Disney’s search for a partner in the world’s fastest-expanding major economy came when the Burbank-based firm dealt with several internal issues.

The 100-year-old Hollywood staple, like its competitors, faces an uncertain environment in the United States, where people are progressively abandoning linear TV in favour of TikTok and YouTube. However, Disney has been particularly severely struck by movie office disappointments and corporate upheavals.

In November, Iger stated that the business is exploring opportunities in India but wants to remain there.

The lukewarm star
It’s easy to understand why. With its relatively free economy and large English-speaking population, India is a desirable destination for global entertainment enterprises.

Prime Minister Narendra Modi’s government expects the country to soon become the world’s third-largest media and entertainment market, up from fifth place today. Disney was handed that market on a silver platter after acquiring Fox.

Star India had established its massive viewership by spending billions of dollars on broadcast rights to several of India’s most popular sports, including cricket, the country’s national preoccupation. In 2017, it outbid Facebook (META) and Sony (SONY) to acquire the IPL, one of the world’s most valuable sporting properties, for $2.6 billion over five years.

The network’s other significant advantage was its local content. Star India provides over 70 TV stations in nine languages in a country with nearly two dozen languages spoken.

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However, Disney has yet to seize the chance.

While its TV division is growing well in India, Iger admitted in November that the company was failing in other sectors. Its streaming app, Hotstar, has lost millions of customers since losing the IPL rights to Reliance nearly two years ago.

Hotstar took another hit in March 2023 when it ceased broadcasting HBO content. Weeks later, Warner Bros. Discovery (WBD), the parent company of HBO and CNN, shifted its content to Ambani’s JioCinema, bringing dedicated Indian viewers of hit shows like “Game of Thrones” and “Succession” with them.

Aside from Ambani’s losses, critics have questioned Disney’s India strategy, particularly its aggressive sports expenditure.

The brand’s “entertainment assets would be attractive to any acquirer or partner …[but] … Disney’s India sports business has faced challenges.” According to Mihir Shah, vice president of research firm Media Partners Asia.

While Disney lost the internet rights to IPL matches in 2022, it retained the TV rights until 2027 for more than $3 billion. It also retained the rights to broadcast the International Cricket Council’s events until 2027 for an additional “staggering $3 billion,” Shah stated.

Financial troubles for the company will persist in the coming years, “largely attributed to Disney’s aggressive bidding in renewing rights,” he added.

The media conglomerate has also failed to fully capitalize on its streaming service’s “technical prowess” due to the loss of the IPL and “limited investments in local entertainment content,” according to Shah.

From antagonism to partnerships
The American company’s failures come when competition in India is heating up — the potential Reliance-Disney merger isn’t the only one being considered.

disney

Disney Is Trying To Salvage Its Indian Dreams

Sony and India’s Zee Entertainment have negotiated for over two years about merging their companies and forming a $10 billion conglomerate. The destiny of that transaction is unknown, but analysts believe such corporate marriages will be critical to gaining scale and competing with global streaming giants like Netflix (NFLX) and Amazon (AMZN), both of which have a significant presence in India.

“These potential deals are a sign that India’s entertainment industry is entering a phase of consolidation, where only a handful of players with deep pockets will be able to operate,” said Aliasgar Shakir, a Motilal Oswal Financial Services analyst.

In a November earnings call, Iger stated that Disney intends to maintain its presence in India while focusing on improving the bottom line.

Ambani, Asia’s second richest man, can help Disney accomplish more with his billions and media ambitions.

The combined business would be huge, with over 100 TV stations and two streaming services.

“It is too early to interpret this as Disney scaling back in India,” Shah said. “The contours of the deal are still unknown, but it is looking more like a partnership between Reliance Industries and Disney.”

It might also mark the beginning of a power couple that extends beyond the media, with industry insiders speculating on a joint push into amusement parks.

“We have to remember that both these companies have business interests beyond media and entertainment, and this partnership could be a start of something bigger,” Shah said.

SOURCE – CNN

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

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Boeing whistleblower John Barnett committed suicide, according to a police report released on Friday, bringing an investigation into the shocking death of a longtime employee who raised concerns about the airplane manufacturer’s safety and production standards – and who sued the company, alleging illegal retaliation against him.

Barnett, 62, was discovered dead in a vehicle on March 9 from a self-inflicted gunshot wound in Charleston, South Carolina. Officers were summoned to perform a welfare check on Barnett at a Holiday Inn after he failed to appear for a deposition in his complaint against Boeing, according to his lawyers and a police incident report.

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

When responding officers arrived, they discovered Barnett deceased in the driver’s seat of a truck in the parking lot. He was clutching a firearm. The initial police report also stated a message in the truck.

However, in a statement released after his death, Barnett’s lawyers stated that his deposition was nearing completion and that he appeared to be in high spirits.

“We saw no sign that he would commit suicide. “No one can believe it,” his attorneys, Robert Turkewitz and Brian Knowles, stated in a statement on March 12. “The Charleston police need to investigate this fully and accurately and tell the public what they find out.”

The Charleston Police Department announced Friday that the Charleston County Coroner’s Office had decided that Barnett had committed suicide.

The inquiry revealed that Barnett was shot in the head at close range, with the firearm located in his right hand. A notebook was also discovered in the front seat of the car, indicating that “he was going through a period of serious personal distress,” according to a police press statement.

Police provided CNN with a photograph of a note left in the car, which had several nasty statements addressed at Boeing.

“As this investigation comes to a close, we should not forget it represents the loss of Mr. Barnett’s life,” police stated. “We extend our deepest sympathies to his family during this difficult time and hope they continue to find the strength to persevere in absence.”

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Boeing did not immediately respond to requests for comment. In March, the firm expressed its sadness at Barnett’s death.

“Our thoughts are with his family and friends,” the business stated.

Barnett, a former quality manager who had worked at Boeing for decades, told the New York Times in 2019 that he had uncovered dangerous wiring clusters in Boeing’s manufacturing procedures that could have resulted in an aircraft’s catastrophic failure if severed by surrounding metal slivers.

“As a quality manager at Boeing, you’re the last line of defense before a defect makes it out to the flying public,” Barnett told the New York Times. “And I haven’t seen a plane out of Charleston yet that I’d put my name on saying it’s safe and airworthy.”

In a message issued to the facility’s employees and sent to CNN at the time, Brad Zaback, a site leader at the plant and general manager of the 787 program, stated that the Times’ coverage “paints a skewed and inaccurate picture of the program and of our team (at the plant).”

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boeing – VOR News Image

Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Zaback, who said the Times denied an invitation to tour the company, stated that “quality is the bedrock of who we are” and that the plant produces “the highest-quality airplanes.”

Since Barnett’s original public warnings about Boeing, the corporation has had multiple high-profile safety and quality issues, including the explosion of a door stopper on a 737 Max shortly after takeoff last January. This prompted the US Justice Department to announce that Boeing could face criminal charges for its history of safety issues.

SOURCE – (AP)

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Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

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For the nation’s bicycle stores, the last several years have certainly felt like the business version of the Tour de France, with innumerable twists and turns testing their stamina.

Early in the pandemic, a surge in interest in cycling drove sales up 64% to $5.4 billion in 2020, according to Circana, the retail tracking firm. It wasn’t uncommon for some stores to sell 100 or more bikes in a few days.

The boom did not last. Due to pandemic-related supply chain challenges, the retailers sold out of bikes and struggled to replenish. Inventory has caught up, but fewer people require new bicycles. Bicycle manufacturers have started lowering prices to clear off excess inventory. It all adds up to a challenging climate for retailers, with a few bright areas such as dirt and e-bikes.

“The industry had a hard time keeping up with demand for a couple of years, but then demand slowed as the lockdowns ended, and a lot of inventory started showing up,” said Stephen Frothingham, editor-in-chief of Bicycle Retailer & Industry News. “So now for the last, a year and a half, the industry has struggled with having too much inventory, at the supplier level, at the factory level, at the distributor level, at the retail level.”

Circana reports that bike sales will reach $4.1 billion in 2023, up 23% from 2019 but down 24% from 2020. The recovery from the epidemic has been uneven, with large businesses such as REI and Scheels recovering faster than independent bike shops, according to Matt Tucker, director of client development for Circana’s sports equipment business.

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Pixa Bay – VOR News Image

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

John McDonell, owner of Market Street Cycles on San Francisco’s famed Market Street, says the pandemic’s shift to hybrid labor has been especially difficult for business. During the summer, 3,000 bikes would pass by his shop each day. With fewer individuals commuting to work, that number has dropped to less than 1,000.

According to Pacer.ai, which tracks people’s activities based on smartphone usage, San Francisco falls behind all other major cities regarding workers returning to work, with office visits down 49% from April 2019.

“Our downtown is still a wasteland,” McDonell explained.

Independent bike stores now compete not only with national chains but also with bike manufacturers such as Specialized and Trek. These companies have been buying bike shops and selling their bikes directly to customers, thus eliminating the middleman. According to Frothingham, there are now over 1,000 bike shops in the country that are either owned by Trek or Specialized.

“They’ve got the money to absorb the fact that bike stores, you know, are not a super profitable thing, and in the process, they’ve also been able to cut us out of it,” McDonell stated.

McDonell has been obliged to use a skeleton team of himself and another employee, down from five earlier. His desire to sell his shop to a younger bike enthusiast when he retires is diminishing. He might close his store when his lease expires in a few years.

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Pixa Bay – VOR News Image

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“Now I am just trying to land it with both engines on fire and trying not to lose money on my way out,” he stated

Douglas Emerson’s bike business, University Bicycles, in Boulder, Colorado, is doing better, thanks to its placement in one of the country’s most popular biking destinations. He’s owned the shop for 39 years and employs 30 people.

University Bicycles, like other bike retailers, experienced a surge in bike sales due to the pandemic. Emerson recalls selling 107 bicycles in 48 hours. However, immediately following the boom, sales fell considerably due to a lack of inventory, and rentals declined because no one was traveling.

“It became a struggle right after the boom,” Emerson explained. “Since then, manufacturers have overproduced.” In addition, they have significantly reduced prices, which benefits consumers. However, tiny retailers generally cannot take advantage of those discounts.”

Emerson claims the shop hit a “saturation point” when everyone who wanted a bike purchased one. He now sells these consumer items such as jackets, helmets, and locks. His store has returned to its 2019 sales figures.

University Bicycles has also benefited from some of the changes in purchasing trends. The continued strong demand for e-bikes and the increased need for children’s bikes have contributed. Gravel bikes, which can be ridden on both paved and dirt routes, are displacing road cycles as a top seller.

John Ruger, a 50-year biker and faithful University Bicycles client, hasn’t purchased a bike in ten years but intends to buy a gravel bike at present costs. He says a top gravel bike he’s interested in, which would normally cost $12,000 to $14,000, is presently on sale for $8,000.

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Pixa Bay – VOR News Image

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“The timing is good,” he remarked. “I can get a bike now because they’re less expensive and my bikes are getting old.”

Shawna Williams, the owner of Free Range Cycles in Seattle, Washington, did not see the same sales boom as others because her 700-square-foot business was so small that she only accepted customers by appointment from March 2020 to May 2021.

However, Williams did have to deal with the coming shortages. She spent a great deal of time “checking in with other shops to see if we could buy something, even at retail, from them, just in order to get a repair done or a build done.”

She expanded her service offerings, such as repairs and maintenance, to compensate for decreasing bike sales. Despite the epidemic, the maneuvering allowed her to maintain consistent overall sales.

“Bike sales, the way that I have kind of framed the shop, are an awesome bonus, but we really need to be sustaining the shop through repair and, like, thoughtful accessory sales,” Williams stated. “A bike sale to me, if we do things well, that means creating a customer for life.”

SOURCE – (AP)

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

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OpenAI and Reddit have partnered to deliver the social media platform’s content to ChatGPT.

Reddit’s share price increased by more than 10% before the market opened on Friday.

Reddit stated in a blog post that the partnership will grant OpenAI access to its data application programming interface, which provides real-time, structured, and unique content from the platform.

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

Reddit users and moderators will also have access to new artificial intelligence-powered services, and OpenAI will be a Reddit advertising partner.

“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything,” co-founder and CEO Steve Huffman stated. “Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they’re looking for, and helps new audiences find community on Reddit.”

Reddit stated that the agreement is consistent with prior content arrangements and does not modify its data API or developer rules. These rules state that content obtained via Reddit’s data API cannot be utilized for commercial reasons without the platform’s approval.

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

Reddit says API access remains free for non-commercial use under the published level.

“We are thrilled to partner with Reddit to enhance ChatGPT with uniquely timely and relevant information, as well as to explore the possibilities of enriching the Reddit experience with AI-powered features,” Brad Lightcap, OpenAI’s chief operating officer, said in a statement.

Reddit made its Wall Street debut in March, with investors driving the company’s worth to nearly $9 billion seconds after it started trading on the New York Stock Exchange.

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AP – VOR news Image

OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

Reddit has a sizable audience that visits the site regularly to debate a wide range of topics, from stupid memes to existential concerns, and receive suggestions from like-minded individuals.

OpenAI CEO Sam Altman invested in Reddit early on, becoming one of the company’s largest owners.

SOURCE – (AP)

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