After the merger, RIL might only have JioCinema as an OTT platform
According to persons familiar with the situation, Reliance Industries (RIL), which would manage the Star-Viacom18 merged business after regulatory clearances, is considering having only one OTT platform, JioCinema, following the merger.
After the merger, RIL is considering combining Disney+ Hotstar with JioCinema, despite the former's higher downloads, according to one of the sources. Disney+ Hotstar is the streaming service owned by Walt Disney and Star India, whereas JioCinema is operated by Viacom 18, which is controlled by RIL.
According to Google Play Store data, Disney+ Hotstar has over 500 million downloads, while JioCinema has over 100 million.
In February, RIL and Walt Disney agreed to merge Star and Viacom18 to become a $8.5 billion media conglomerate with over 100 channels and two streaming platforms.
As previously reported earlier the business is also willing to remove channels in Hindi and regional markets to relieve the Competition Commission of India's (CCI) concerns over the projected Star-Viacom18 merger's market dominance. The companies are pending CCI and NCLT approvals.
According to RIL's annual report, JioCinema had an average monthly user base of 225 million. According to Sensor Tower, the fourth quarter of 2023 had 333 million monthly active users on Disney+ Hotstar.
In June, Disney+ Hotstar had 35.5 million paid customers, a considerable decrease from the 61 million the platform had at its peak, when it also featured content such as the Indian Premier League (IPL) and HBO. Previously, RIL-owned Viacom18 integrated its OTT platforms under the Voot brand with JioCinema. Viacom18 has three OTT platforms: Voot, Voot Select, and Voot Kids.
JioCinema was transferred to Viacom18 using an NCLT-approved scheme of arrangement. RIL and Bodhi Tree Systems additionally invested ₹15,145 crore in Viacom18. Disney and RIL declined to comment.
According to a second person familiar with the initiative, having a single OTT platform will help save expenses and construct a one-stop OTT destination that will compete well with YouTube in the advertising video on demand (AVOD) market and Netflix and Prime Video in the subscription VOD segment.
"Having two OTT platforms is pointless as it will result in more expenses," it laimed. When Disney+ Hotstar combines with JioCinema, the latter will become the country's leading streaming app, boasting the greatest collection of entertainment, sports, and Hollywood content, totaling over 125,000 hours.
It will also own crucial cricket rights, such as the Indian Premier League (IPL), as well as content from Disney, HBO, NBCUniversal, and Paramount Global.
"Record viewership of the Indian Premier League on JioCinema underscored our ability to scale up audiences on our digital platform in a short time," RIL chairman Mukesh Ambani stated in the company's annual reports.
Disney+, Hotstar, and JioCinema are valued higher than their parent companies' linear TV businesses. Disney+ Hotstar was valued at ₹16,040 crore, and JioCinema was transferred to a Viacom 18 affiliate for ₹24,186 crore.
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