Star India and Star US Holdings have infused a fresh round of funding in Star group’s video on demand platform Hotstar. The Star Group entities have jointly put in ₹1,066 crore ($153 million) into Hotstar’s parent company Novi Digital Entertainment.
The fresh round of funding comes as Hotstar scales up its content and technology. On the content side, the platform has launched a new label Hotstar Specials under which it will come out with original digital content, states a report bytelevisionpost.com.
According to business intelligence platform paper.vc. Star India has contributed a majority share of ₹ 832 crore while Star US Holdings has put in ₹ 234 crore. Earlier, Novi Digital had received ₹ 516 crore from Star US Holdings. Whereas Star India had pumped in ₹ 1,233 crore in 2017.
Hotstar has been boosting its content with the third party acquisitions.
Novi Digital has been running in major deficit. The 408.9 crore loss in the 2016 fiscal had gone up by 20% to reach ₹ 489 on year ending in March 2017 even as there was a significant 81% increase in the revenue from operations, which has increased to ₹ 321 crore from ₹ 178.5 crore in FY16. Subscription has recorded a four-fold increase to ₹129.4 crore from ₹24.17 crore while ad revenue was up 24% to ₹168 crore. The revenue from licensing of content rights stood at ₹23 crore compared to ₹19.2 crore a year ago.
In FY16, the company’s content cost stood at ₹165.9 crore while advertising and the promotional cost was at ₹154.6 crore. The expenditure for technical services was ₹ 147.5 crore.