In a monumental development, Reliance Industries, led by Mukesh Ambani, has inked a non-binding agreement with Walt Disney Co, bringing India one step closer to witnessing the amalgamation of Reliance and Disney Star. The merger is poised to impact the country’s OTT industry significantly, with Jio Cinema and Disney+ Hotstar expected to merge into a unified platform.
The proposed merger, set to be finalized in February 2024, is slated to be the most substantial entertainment consolidation in India. The division of stakes indicates a 51-49 split between Reliance and Disney, respectively, marking Reliance’s increased influence over the combined entity.
The union of Jio Cinema and Disney+ Hotstar is anticipated to revolutionize India’s OTT landscape. Both platforms have been fierce competitors, particularly in the bidding for IPL and international cricket rights. The merger could potentially put an end to this bidding rivalry.
Upon gaining control over Star India channels, Reliance may retain television cricket rights while transferring OTT rights to the merged Jio-Disney platform. This move positions the merged entity as the largest OTT platform in India, boasting streaming rights for cricket, football, HBO, WB content, and more.
The Reliance-Disney deal extends beyond reshaping the OTT business, with potential implications for television viewing as well. As the companies finalize the merger details, users have already started migrating from Hotstar, which has faced challenges since losing IPL rights and the HBO deal.
The merged entity is expected to raise $1.5 billion for the merger, providing Reliance with a more significant stake in the combined firm. As the final touches are applied to this historic merger, the Indian entertainment and OTT landscape is on the brink of a transformative shift.
