In a landmark move poised to reshape India’s media and entertainment landscape, Reliance Industries Limited (RIL) and The Walt Disney Company have finalized a binding agreement to merge their Indian media operations. This strategic alliance aims to create a formidable entity valued at approximately $8.5 billion (₹70,352 crore), positioning it as the nation’s largest media conglomerate.
Nita Ambani, chairperson of Reliance Foundation and wife of RIL’s chairman Mukesh Ambani, has been appointed as the chairperson of the newly formed joint venture (JV). Expressing her enthusiasm, she stated, “It’s a new chapter. It’s a new beginning. And I’m ready to take on new challenges. I think we have to wait for this magic to happen as we look at putting India also on the world map through this merger.”
The merger will consolidate the businesses of Viacom18, a subsidiary of RIL, and Star India, Disney’s local arm. Post-merger, the ownership structure will see RIL holding a 16.34% stake, Viacom18 possessing 46.82%, and Disney retaining 36.84% in the JV. RIL has committed an investment of ₹11,500 crore to bolster the growth and expansion of the merged entity.
Uday Shankar, a seasoned media executive and former president of The Walt Disney Company Asia Pacific, will serve as the vice-chairperson of the JV. Shankar emphasized the transformative potential of the merger, stating, “We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. All of us are committed to delivering exceptional value to our audiences, advertisers, and partners.” forbesindia.com
The combined entity is set to become a dominant force in both television broadcasting and digital streaming in India. It will manage over 100 television channels, including popular brands like Colors, StarPlus, and StarGOLD, and will produce more than 30,000 hours of broadcast entertainment content annually. On the digital front, the merger brings together streaming platforms JioCinema and Hotstar, which collectively boast over 50 million subscribers.
A significant highlight of the merger is the consolidation of sports broadcasting rights. The JV will hold an extensive portfolio of sports rights across cricket, football, and other major sports, including coveted events like the Indian Premier League (IPL), Wimbledon, and the English Premier League. This positions the entity to offer unparalleled sports content to a vast audience, both domestically and internationally.
The merger has received the green light from India’s Competition Commission, albeit with certain stipulations to address concerns about market dominance, particularly in cricket broadcasting. Concessions include commitments not to unreasonably increase advertising rates for cricket matches, the sale of 7-8 non-sports TV channels, and ensuring subscription rates remain within regulatory limits. reuters.com
Mukesh Ambani, expressing his vision for the JV, remarked, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation.”
The formation of this media powerhouse is anticipated to intensify competition in India’s $28 billion media and entertainment sector, challenging established players like Sony, Zee Entertainment, Netflix, and Amazon Prime Video. The JV’s expansive reach, encompassing over 750 million viewers in India and catering to the global Indian diaspora, is expected to redefine content consumption patterns and set new benchmarks in the industry. forbesindia.com
As the media landscape undergoes this significant transformation, stakeholders and audiences alike are keenly observing the developments. The successful integration of these media giants holds the promise of delivering enriched and diverse content, thereby elevating India’s presence on the global entertainment stage.
