Reliance Industries Limited (RIL), set to gain control of the newly merged Star-Viacom18 entity following regulatory approval, is reportedly considering a single OTT platform, JioCinema, after the merger. Sources close to the matter indicate that RIL is exploring the possibility of combining Disney+ Hotstar with JioCinema, despite the former boasting a larger download base.
Disney+ Hotstar, owned by Walt Disney-controlled Star India, and JioCinema, owned by RIL's Viacom 18, currently operate as separate streaming services. According to Google Play Store data, Disney+ Hotstar has garnered over 500 million downloads, while JioCinema has accumulated over 100 million.
In February, RIL and Walt Disney inked agreements to combine Star and Viacom18, creating a media powerhouse valued at $8.5 billion. This union would encompass over 100 channels and, initially, two streaming platforms.
Recent developments suggest Viacom18 is bolstering its JioCinema team, with the appointment of Sushant Sreeram, former Prime Video India country director, and Ishan Chatterjee, ex-YouTube India head, as chief marketing officer and chief revenue officer, respectively.
Furthermore, as previously reported, Viacom18 is prepared to shut down certain channels across Hindi and regional markets to address the Competition Commission of India (CCI)'s concerns about market dominance by the proposed merged entity. The merger awaits approval from the CCI and National Company Law Tribunals (NCLT).
RIL's annual report reveals JioCinema's average monthly reach at 225 million users. Meanwhile, Disney+ Hotstar, according to Sensor Tower, recorded 333 million monthly active users in the fourth quarter of 2023. While Disney+ Hotstar had 35.5 million paid subscribers in June, this number represents a significant drop from its peak of 61 million, coinciding with the loss of key content like the Indian Premier League (IPL) and HBO.
Previously, Viacom18 consolidated its OTT platforms, Voot, Voot Select, and Voot Kids, under the Voot brand and then merged it with JioCinema. This consolidation followed an NCLT-sanctioned scheme of arrangement, where RIL and Bodhi Tree Systems injected Rs 15,145 crore into Viacom18.
Both Disney and RIL have declined to comment on the matter.
Sources suggest that a single OTT platform would streamline costs and create a comprehensive destination offering strong competition to YouTube in the advertising video on demand (AVOD) segment and Netflix and Prime Video in the subscription VOD segment.
âHaving two OTT platforms is pointless as it will result in more expenses,â stated one source.
Upon merging with JioCinema, Disney+ Hotstar's content, which includes over 125,000 hours of entertainment, sports, and Hollywood productions, would be incorporated into JioCinema, making it the leading streaming app in India. Key cricket rights, including the IPL, as well as content from Disney, HBO, NBCUniversal, and Paramount Global would also become part of the platform.
"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 noted in the company's annual report.
Recent reports indicate that Disney+, Hotstar, and JioCinema have been valued higher than their parent companies' linear TV businesses. Disney+ Hotstar was valued at Rs 16,040 crore, while JioCinema was transferred to a Viacom18 subsidiary for a consideration of Rs 24,186 crore.
The merger's outcome and the potential consolidation of Disney+ Hotstar into JioCinema remain subject to regulatory approvals and further developments.
