After the Merger, RIL Might Just Have JioCinema as Its OTT Platform

According to a media report, Reliance Industries (RIL), the parent company of Star-Viacom18, is considering limiting itself to JioCinema as its only over-the-top (OTT) platform following the merger, subject to regulatory approvals.

RIL is considering over a combination between Disney+ Hotstar and JioCinema, even though the former has more downloads.

Star India's streaming service, Disney+ Hotstar, is owned by Walt Disney, whilst Viacom 18, which is controlled by RIL, owns JioCinema.

The Future Strategy

With the acquisition of Star and Viacom18, RIL and Walt Disney planned to construct a $8.5 billion media conglomerate in the coming months. The giant would have had more than 100 channels and two streaming platforms.

The business is reportedly prepared to shut down channels in Hindi and regional markets in order to appease the Competition Commission of India (CCI) over worries about the market dominance of the projected Star-Viacom18 merger. Pending clearance from CCI and the National Company Law Tribunal (NCLT), the businesses are in a holding pattern.

Market Dominance

The average monthly reach of JioCinema was 225 million consumers, as indicated in RIL's annual report. According to Sensor Tower, 333 million people used Disney+ Hotstar at least once a month in the fourth quarter of 2023.

When it was at its highest point, with entertainment like HBO and the Indian Premier League (IPL), Disney+ Hotstar had 61 million paid customers. In June, that number dropped to 35.5 million, a substantial decline.

Why This Merger Will Change the Entire Market Dynamics?

Viacom18, which is owned by RIL, had previously integrated its Voot brand over-the-top (OTT) platforms with JioCinema. As of now, Viacom18's OTT offerings included Voot, Voot Select, and Voot Kids.

The transfer of JioCinema to Viacom18 was previously approved by the NCLT and included investments of INR 15,145 crore in Viacom18 from RIL and Bodhi Tree Systems.

When JioCinema and Disney+ Hotstar combine, it will become the leading streaming app in India with more than 125,000 hours of Hollywood, sports, and entertainment content.

The Indian Premier League (IPL) and other major cricket rights will also be held by it. Disney, HBO, NBCUniversal, and Paramount Global will also have content available.

"Record viewership of the Indian Premier League on JioCinema underscored our ability to scale up audiences on our digital platform in a short time," RIL chairman Mukesh Ambani had stated in the company's annual report.

Disney+, JioCinema, and Hotstar have reportedly been valued higher than the linear TV businesses of their parent firms, according to a recent media report. The valuation of Disney+ Hotstar was INR 16,040 crore, and a Viacom 18 affiliate received INR 24,186 crore for the transfer of JioCinema.

Reliance & Walt Disney New Strategy For Antitrust Approval

To expedite the antitrust clearance process for their $8.5 billion merger of Indian media holdings, Reliance & Walt Disney have reportedly offered to sell some channels.

StartupTalkyNitin Konde