Reliance Industries is mulling over merging Disney+ Hotstar with JioCinema after it gets regulatory nod for the proposed Star India-Viacom18 merger
The Mukesh Ambani-led conglomerate is keen on merging the two OTT platforms to cut costs and expand JioCinema’s content offerings
Disney and Reliance have also proposed to shut down some Hindi and regional channels of Star India and Viacom18 to allay CCI's concerns about the market dominance of the merged entity
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Reliance Industries is mulling to have only one over-the-top (OTT) platform, JioCinema, after it wraps up merger with Star and Viacom18.
As per ET’s report, citing sources, The Mukesh Ambani-led conglomerate plans to merge Disney+ Hotstar with JioCinema after getting regulatory nod for the proposed merger.
Reliance Industries is keen on merging the two OTT platforms to cut costs and expand JioCinema’s content offerings.
In its annual report 2023-24, Reliance Industries said that JioCinema had 225 Mn average monthly active users while Disney+ Hotstar had 333 Mn. Meanwhile, data from Google Play Store showed that Disney+ Hotstar had more than 500 Mn downloads, significantly higher than JioCinema’s 100 Mn.
Further, Disney and Reliance Industries have also proposed to shut down some of the Hindi and regional channels of Star India and Viacom18 to allay concerns of India’s antitrust watchdog about the market dominance of the proposed Star-Viacom18 merged entity.
However, the two parties are said to be “resisting” any changes to cricket broadcast rights they own.
The responses of the companies came after the competition watchdog privately asked both Reliance and Disney around 100 questions in connection with their $8.5 Bn merger.
It is pertinent to note that the Reliance-Star merged entity would hold both digital and TV broadcast rights of almost all major cricket tournaments, including the Indian Premier League (IPL). It will have a 40% share of the advertising market in TV and streaming segments, according to brokerage firm Jefferies.
In February this year, Reliance Industries and The Walt Disney Company inked a deal to set up a joint venture (JV) that would combine the businesses of Viacom18 and Star India Private Limited.
At the time, it was reported that the merged entity will host over 100 TV channels and streaming platforms – Disney+ Hotstar and JioCinema. It will also exclusively wield the rights to distribute Disney’s content in India as well Viacom18-owned sports content.
In its financial report for the second quarter of 2024, Walt Disney said it incurred over $2 Bn charges due to goodwill impairments related to Star India on account of merger with Reliance Industries.
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