Reliance Keeps Disney+ Hotstar as Top Streaming Platform After Merger

Reliance Industries has reportedly decided to make Disney+ Hotstar its flagship streaming platform following the highly anticipated merger between Star India and Viacom18. According to sources familiar with the development, this strategic move will see JioCinema, Reliance’s existing streaming service, merged into Disney+ Hotstar, creating a consolidated entertainment powerhouse for the newly combined entity. This decision marks a significant shift in India’s streaming landscape and comes as part of the broader $8.5 billion merger between Reliance and Walt Disney’s media assets in India.

A Game-Changing Merger in India’s Media Landscape

The merger, announced in February 2024, is set to transform the Indian media industry. The deal, valued at over ₹70,000 crore ($8.5 billion), will create a media giant that controls more than 100 TV channels and two major streaming services. This merger places Reliance in a dominant position within the Indian entertainment and sports streaming markets, expanding its influence over both traditional television and digital platforms.

Why Disney+ Hotstar Was Chosen Over JioCinema

One of the key decisions in this merger was Reliance’s choice to keep Disney+ Hotstar as its primary streaming platform rather than its own JioCinema. Insiders have revealed that the decision was driven largely by Disney+ Hotstar’s advanced technological infrastructure and its ability to handle large-scale streaming events more efficiently than JioCinema.

While Reliance considered various options, including integrating Disney+ Hotstar content into JioCinema or maintaining separate platforms for sports and entertainment, Disney+ Hotstar’s existing capabilities and robust user base made it the preferred choice. Sources noted that the platform’s infrastructure was already well-suited to manage high-traffic events, such as live cricket matches, which are immensely popular in India.

Exclusive Rights on Disney+ Hotstar

One of the most significant outcomes of this consolidation will be Disney+ Hotstar’s exclusive rights to live sports streaming, including marquee events like the Indian Premier League (IPL). Currently, JioCinema holds the rights to stream IPL matches, but post-merger, these events will shift to Disney+ Hotstar, solidifying its position as the go-to platform for sports enthusiasts in India.

This shift is expected to have a massive impact on viewership and advertising revenue, as live cricket broadcasts are among the most-watched events in the country. According to reports by Reuters, all live sports content from the merged entity will be streamed exclusively on Disney+ Hotstar, making it a key destination for sports fans.

Antitrust Concerns and CCI Approval

The merger received the green light from India’s Competition Commission (CCI) in August 2024. However, the deal’s approval was contingent on certain voluntary modifications to address concerns about the merger’s potential impact on competition in the streaming and sports broadcasting markets.

The CCI had initially raised concerns about the merger’s dominance in cricket broadcasting rights, a highly lucrative segment in India. To address these concerns, Reliance made several concessions, including a commitment to refrain from imposing “unreasonable” price hikes on cricket match advertisements. This move was aimed at ensuring that competition within the sector remained healthy and that consumers would not be subjected to unfair pricing practices post-merger.

A Dominant Player in the Streaming Market

With the completion of the merger, the combined company is expected to control approximately 40% of India’s streaming and television advertising market, according to estimates from the Jefferies Group. This dominant market share positions the new entity as a formidable competitor in both the entertainment and sports broadcasting sectors, with the potential to generate significant advertising revenue.

Live sports, particularly cricket, is a key driver of both viewership and ad sales for streaming platforms in India. The IPL alone attracts millions of viewers, and the advertising revenue associated with these broadcasts is substantial. By consolidating these rights under Disney+ Hotstar, the merged company will be well-placed to capture a significant share of the advertising market.

Reliance’s Strategic Vision for the Future

Reliance’s decision to align with Disney+ Hotstar reflects its broader strategy of creating a unified, world-class streaming platform capable of catering to India’s vast and diverse audience. By merging JioCinema into Disney+ Hotstar, Reliance aims to leverage the strengths of both platforms to deliver a seamless streaming experience that offers a mix of sports, entertainment, and original content.

This consolidation also aligns with Reliance’s broader vision of expanding its presence in the digital and media sectors, which have become increasingly important in the age of streaming and on-demand content. With Disney+ Hotstar at the forefront, Reliance is poised to dominate India’s streaming landscape and drive the future of digital entertainment in the country.