Reliance’s new plan will convert JioCinema to Disney+Hotstar
Reliance New Plan: After Star India and Viacom18 merged, Reliance is apparently planning to maintain Disney+ Hotstar as its main streaming service, people familiar with the situation told a media report. As a result of this choice, Disney+ Hotstar and JioCinema, Reliance’s existing streaming service, would unite to establish a single streaming platform.
The action is a part of the February 2024 announcement of the $8.5 billion merger of Reliance and Walt Disney’s Indian media businesses. The resultant media behemoth will command two significant streaming services and more than 100 TV stations.
Why did Reliance choose to partner with Disney+ Hotstar?
Reliance’s management reportedly decided to keep Disney+ Hotstar because of its better technology setup. According to Reuters, the business has also explored various tactics, such as operating separate platforms for sports and entertainment content or incorporating Disney+ Hotstar into JioCinema.
All live sports events from the combined company, including the IPL, which is now available on JioCinema, will only be broadcast on the Disney+ Hotstar app, according to Reuters.
“Cricket promise” made by Reliance to CCI
This combination comes after the Disney-Reliance merger was approved by the Competition Commission of India (CCI) in August 2024. With a few voluntary changes, the antitrust agency approved the acquisition for over ₹70,000 crore.
At first, the CCI had voiced worries about how the merger would affect competition, namely in the areas of streaming services and broadcasting rights for cricket. Reliance reportedly made concessions, according to Reuters, including a promise to refrain from raising rates for cricket match ads in an “unreasonable” way.
In India, live cricket matches are quite profitable since they increase viewership and generate cash for streaming services via advertising. According to Jefferies Group estimates, the merged business will own around 40% of the Indian market for TV and streaming advertising.
