Reliance to retain Disney+ Hotstar as primary platform after JioCinema merger: Report

Reliance to retain Disney+ Hotstar as primary platform after JioCinema merger: Report

Disney+ Hotstar set to absorb JioCinema as Reliance reshapes its OTT strategy following the merger of Star India and Viacom18.

Under the agreement, Reliance Industries Limited (RIL) will have a controlling interest in the newly formed entity, holding a 56% stake. Disney will possess 37% ownership.
Business Today Desk
  • Oct 23, 2024,
  • Updated Oct 23, 2024, 1:17 PM IST

Reliance Industries Ltd (RIL) has chosen Disney+ Hotstar as the main streaming platform post the merger of Star India and Viacom18, with JioCinema set to be absorbed, according to a report by The Economic Times. The move aims to consolidate Reliance’s presence in the Indian streaming market.

While Reliance has not officially confirmed the development, insiders have revealed that employees at both JioCinema and Disney+ Hotstar were informed of the decision earlier this week.

Post-merger, Disney+ Hotstar will emerge as the sole streaming platform for the combined entity, with the platform set to dominate India’s growing online entertainment space. “Reliance’s leadership ultimately chose Disney+ Hotstar for its superior tech infrastructure,” said a source familiar with the decision.

In February, Reliance struck an $8.5 billion deal with Walt Disney to merge Star India and Viacom18. The merger has already received approvals from the Competition Commission of India, the National Company Law Tribunal, and the Ministry of Information and Broadcasting.

Why Disney+ Hotstar Came Out on Top

Despite both platforms having extensive content libraries and strong positions in live sports streaming, three key factors led to Disney+ Hotstar being the platform of choice:

    1.    Superior Tech Infrastructure: According to sources, Disney+ Hotstar was selected for its reliable and scalable technology, which outperformed that of JioCinema.     2.    Larger User Base: Reports show that Disney+ Hotstar had 333 million monthly active users by Q4 2023, surpassing JioCinema, which had 225 million during the same period.     3.    More Paid Subscribers: As of June, Disney+ Hotstar had 35.5 million paid subscribers, while JioCinema had just over 16 million by September.

Reliance streamed the Indian Premier League (IPL) on JioCinema for the past two years. However, with the merger nearly complete, IPL 2025 matches are expected to stream on Disney+ Hotstar. RIL reportedly explored multiple strategies, including running separate platforms for sports and entertainment, but ultimately opted for consolidation.

The report suggests that once the merger is finalised, Star India will manage the operations of the newly combined entity. Viacom18’s TV and streaming assets will shift to Star. Reliance will hold a 56% stake, Walt Disney will retain 37%, and Bodhi Tree Systems, owned by Uday Shankar and James Murdoch, will hold 7%. Nita Ambani is expected to serve as chairperson, with Uday Shankar as vice-chair.

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