Indian media landscape undergoes seismic shift as Reliance Industries Ltd. and Walt Disney Co. merge to form an $8.5 billion media powerhouse.
Last month, Reliance Industries Ltd., headed by Indian billionaire Mukesh Ambani, shook the Indian media industry by announcing its acquisition of Disney’s India business. This strategic move has birthed an $8.5 billion media giant with a diverse portfolio ranging from film and television production to news and sports content. The merger is poised to reshape India’s streaming market landscape significantly.
Dominating the Streaming Scene
Image Source: deccanherald.com
Before the merger, nearly half of India’s internet users were already engaging with streaming platforms owned by Reliance and Disney. According to data from Virginia-based analytics firm Comscore, in January alone, these platforms collectively attracted 243.5 million users, claiming an impressive 46.5% market share. Hotstar, Disney’s flagship streaming service, led the charge with over 114 million unique visitors, while Reliance’s JioCinema and JioTV collectively garnered more than 129 million visitors during the same period.
Cricket: The Winning Ticket
Streaming cricket has been a cornerstone of success for both Hotstar and Reliance’s platforms. Notably, the Reliance platforms experienced a significant surge in viewership between March and May 2023, fueled by their coverage of the Indian Premier League. Similarly, Hotstar’s viewership skyrocketed to 191 million visitors in November, primarily driven by its exclusive coverage of the Men’s Cricket World Cup. This emphasis on cricket content has solidified the platforms’ positions as leading players in the Indian streaming market.
Disruption and Competition
The Ambani-Disney merger is expected to have far-reaching implications for competitors and the broader media landscape. Netflix Inc. and Amazon.com Inc.’s Prime Video+miniTV, as well as local platforms like Times Internet’s MXPlayer and Zee Entertainment Ltd’s ZEE5, are likely to face intensified competition. Additionally, traditional linear TV broadcasters, such as Sun TV and Sony, may struggle to maintain market share in the face of this consolidation.
Karan Taurani, Senior Vice President of Elara Securities India Pvt., noted in a recent research note that the merged entity will command a significant portion of India’s advertising market. This dominance could potentially squeeze out smaller players and reshape the advertising ecosystem.
In conclusion, the Ambani-Disney merger marks a pivotal moment in India’s media landscape. With an unparalleled content portfolio and vast resources at their disposal, the newly formed media giant is poised to capture a substantial share of the Indian streaming market, setting the stage for a new era of digital entertainment dominance.
I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.