Disney and Reliance Industries are making waves in the Indian media and entertainment industry as they inch closer to merging their massive TV and streaming businesses. This potential merger, which includes various streaming platforms, India’s top pay-TV platform, and over 100 linear TV channels, has the power to reshape the industry as we know it.
According to unnamed sources familiar with the matter, Disney and Reliance Industries have already taken steps to address any potential anti-trust issues that may arise. The two companies have even engaged lawyers to handle these matters. At the end of December, they also signed a non-binding merger term sheet, signaling their commitment to moving forward with the deal.
When questioned about the merger, both Disney and Reliance Industries have remained tight-lipped, leaving industry insiders eager for more information.
Disney’s presence in the Indian entertainment sector grew significantly after its acquisition of 21st Century Fox. This move brought the Star pay-TV platform and the immensely popular Hotstar streaming startup under Disney’s umbrella. To capture the mass market, Disney integrated Hotstar into its own Disney+ platform, offering a compelling streaming service at an affordable price point.
However, Disney’s dominance faced a formidable challenge from the Viacom18 group, controlled by Ambani’s Reliance Industries. Viacom18’s suite of Jio-branded operations, spanning mobile phones, broadband internet, and streaming service JioCinema, created fierce competition for Disney.
In a significant turn of events, Disney failed to secure the streaming rights for the highly anticipated 2023-2027 seasons of the Indian Premier League cricket tournament. Jio outbid Disney for the streaming rights, leading to a significant loss of users for Disney+ Hotstar. Jio’s decision to stream the IPL for free further undercut Disney’s position.
With Reliance Industries’ deep pockets, Jio has been capitalizing on Hollywood’s ongoing consolidation trend. Last year, Jio became the exclusive streaming home in India for HBO, Max Original, and Warner Bros content, hindering the launch of HBO Max in the country. This victory for Jio also dealt a blow to Disney since Star TV previously carried WBD content.
Should the merger between Disney and Reliance Industries be finalized, the merged entity would likely see Reliance-Viacom18-JioCinema holding a majority stake. However, the issue of cricket rights may pose a challenge during the merger process. To comply with anti-monopoly regulations, some of the IPL rights might need to be shared with rival operators.
Another factor to consider is the potential mega-merger between Sony and Indian TV and streaming conglomerate Zee Entertainment Enterprises. If this long-awaited deal reaches fruition, it may pave the way for Jio and Disney to receive regulatory approval more smoothly.
The Disney-Reliance Industries merger holds tremendous potential for the Indian media and entertainment landscape. As the deal progresses, industry insiders and enthusiasts eagerly await further developments. To stay updated on this story and others, visit F5mag.com.