Hotstar To Be Sole Streaming Platform Following Reliance-Disney Merger

As Reliance-Disney India merger nears completion, the combined entity reportedly plans to keep Disney+ Hotstar as its sole streaming platform.

Disney+ Hotstar will absorb JioCinema, and the former will stream the 2025 edition of the Indian Premier League (IPL), Economic Times reported citing sources. 

As per the report, Reliance initially mulled various strategies for integrating the two streaming platforms, including a plan to subsume Disney+ Hotstar into JioCinema. It also reportedly explored a plan to operate two separate platforms, with one focussing on sports and the other on entertainment.

“Reliance’s leadership ultimately chose Disney+ Hotstar for its superior tech infrastructure,” the report quoted a source as saying.

The proposed move will position Hotstar as the primary streaming arm of the combined $8.5 Bn venture. The employees of both OTT platforms were reportedly informed about the decision earlier this week.

Notably, this comes just a day after it was reported that Reliance was considering spinning off Disney+ Hotstar as a sports-centric platform that would stream all live sports content of the merged entity.

In August, reports also said that Reliance was keen on having just one streaming platform, JioCinema, after the merger to cut costs and expand JioCinema’s content offerings. 

For the uninitiated, Reliance and Walt Disney signed a $8.5 Bn deal to merge their India media operations in February this year. The proposed transaction is expected to create a media juggernaut that will encompass more than 100 TV channels, two streaming platforms and a reported user base of more than 750 Mn.

Under the deal, Star India will be the operating company of the merged entity and Viacom18 will transfer all its TV and streaming assets to Star. Reliance will hold a 56% stake in the entity, while Walt Disney and Bodhi Tree Systems will have 37% and 7% shareholding, respectively. 

Besides, the combined entity will own the digital streaming rights of almost all major sports tournaments in the country, including the IPL and domestic matches of the Indian cricket team. 

The merger has so far received all key approvals from Indian authorities, including the Competition Commission of India (CCI), the National Company Law Tribunal (NCLT) and the information and broadcasting ministry. 

Reliance expects the merger to be completed by the end of the third quarter (Q3) of the ongoing financial year 2024-25 (FY25). 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.