Winning Bizness Desk
Mumbai. In a groundbreaking move, Disney and Reliance Entertainment have announced their merger, which has received the green light from both the Competition Commission of India (CCI) and the Mumbai Bench of the National Company Law Tribunal (NCLT). This merger is set to create India’s largest entertainment company, transforming the landscape of the country’s media and entertainment industry. The combined entity will boast an impressive 120 television channels, though some may be consolidated or discontinued post-merger. Disney Star’s 80 channels will be merged with Reliance Viacom18’s 40 channels, forming a colossal network with a reach of 750 million viewers across India. In addition, the new company will have control over two leading OTT platforms: Disney+ Hotstar and JioCinema, which together offer more than 200,000 hours of digital content. This merger will also make the new company a powerhouse in sports broadcasting. Viacom18 currently holds the TV rights for cricket matches managed by the Board of Control for Cricket in India (BCCI), while Disney Star owns the television rights for the Indian Premier League (IPL) until 2027.
JioCinema has the digital rights to stream IPL matches
Additionally, Reliance’s OTT platform JioCinema has the digital rights to stream IPL matches. Beyond cricket, the company will have exclusive rights to broadcast prestigious events such as the Wimbledon Tennis Championship, MotoGP, and the English Premier League. The joint venture will also hold exclusive rights to distribute Disney films and productions in India, along with licenses for over 30,000 Disney content assets. Walt Disney CEO Bob Iger has expressed optimism about the merger, highlighting that it will create a formidable entity capable of remaining competitive in a rapidly evolving market. The new company is expected to have the largest OTT customer base in India, with Disney+ Hotstar’s 36 million and Reliance’s 15 million paying subscribers, totaling 51 million. This partnership presents significant growth opportunities for both companies. For Disney, it offers a chance to expand its footprint in India while mitigating risks. For Mukesh Ambani’s Reliance, the merger solidifies its dominance in India’s $28 billion (approximately ₹2.3 lakh crore) entertainment sector.
To capture a 40% share of the Indian advertising market
The newly formed company is projected to capture a 40% share of the Indian advertising market in the TV and streaming segments, establishing a near-monopoly in cricket advertising revenue. With competition from global players like Sony, Netflix, and Amazon Prime Video, the merger positions the new entity to remain a dominant force in the Indian entertainment industry. Viewers are likely to benefit from competitive pricing and an expanded content library, as both Disney and Reliance are expected to introduce affordable plans to attract more subscribers.
