From Cricket To Dramas: Reliance-Disney Merger Promises A New Era In Entertainment
The merger of Reliance and Disney is being seen as groundbreaking as it is expected to change the face of the entertainment industry. The Rs 2.1 lakh crore merger is touted to consolidate significant cricket events like the Indian Premier League (IPL) and beloved TV shows, reaching millions of households across the country.
What Will The Reliance And Disney Merger Entail?
The combined entity will present TV viewers with a comprehensive offering of 120 channels, including over 70 from Star India and 38 from Viacom18, spanning eight languages. Notable channels such as Colors, Star Plus, Star Gold, and sports channels like Star Sports and Sports18 will be part of the merged portfolio.
The merged entity will also have two streaming platforms, making its business much larger than rivals such as Japan's Sony, Netflix and India's Zee Entertainment in the country's $28 billion media and entertainment sector.
Collaboratively, Reliance and Disney will extend their reach to more than 750 million viewers in India, serving not only the domestic audience but also catering to the Indian diaspora worldwide.
With a 40% share in the TV advertisement market and a 44% share in the subscription market, the two companies, Reliance Industries' subsidiary Viacom18 and Disney's Star India, are poised to dominate these segments. Analyst estimates project their overall TV market share to reach 42% by FY23.
The merger, announced on February 28, brings together the strengths of Viacom18 and Star India, creating one of India's largest TV and digital streaming platforms under the umbrella of Reliance Industries.
Here¡¯s a brief breakdown:
TV
1. Viacom18, predominantly owned by Reliance, boasts 40 television channels, encompassing popular networks like Comedy Central, Nickelodeon, and MTV.
2. Disney Star, a well-recognized brand in India, operates approximately 80 channels, earning acclaim for Hindi family dramas and featuring Hollywood movies.
3. Viacom18 holds the television rights for both domestic and international cricket matches organized by the Board of Control for Cricket in India (BCCI). Meanwhile, Disney owns the television rights for the highly popular Indian Premier League (IPL) until 2027.
STREAMING(OTT)
1. Reliance's JioCinema and Disney's Hotstar will merge to offer a consolidated content library exceeding 200,000 hours. This extensive collection will encompass television dramas, movies, and sporting events.?
2. In 2022, Disney's Hotstar secured the second position as the most downloaded video streaming app in India, following MX Player, as reported by the Federation of Indian Chambers of Commerce and Industry and EY.
3. Disney's streaming catalog encompasses global blockbusters, Marvel universe films, and National Geographic documentaries. According to a report by media consulting firm Ormax, it featured seven out of the top 15 most-watched original shows in India in 2022.
4. Disney holds the digital rights for International Cricket Council's matches in India until 2027. However, JioCinema, owned by Ambani, secured the streaming rights for the Indian Premier League (IPL) until 2027 after surpassing Disney's bid.
(With inputs from Reuters)
