Major Streaming Shake-Up: Potential Merger Of Disney+ Hotstar And JioCinema

Reliance Industries Limited (RIL) is reportedly contemplating a major merger between its streaming platform, JioCinema, and Disney+ Hotstar, a service owned by Walt Disney’s Star India. This potential consolidation could dramatically reshape the streaming landscape in India.

Disney+ Hotstar, with its impressive tally of over 500 million downloads, has been a prominent player in the Indian streaming market. In contrast, JioCinema, managed by RIL’s Viacom18, has garnered over 100 million downloads. Despite Disney+ Hotstar’s larger download figure, RIL is considering merging these platforms to create a unified, dominant streaming service.

The latest annual report from RIL highlights that JioCinema enjoys a robust average of 225 million users per month. Disney+ Hotstar, on the other hand, reported 333 million active users in the fourth quarter of 2023. However, Disney+ Hotstar has faced a significant decline in its paid subscriber base, which plummeted from a peak of 61 million to 35.5 million as of June. This decline followed the loss of key content, including the Indian Premier League (IPL) and various HBO shows, which had previously drawn substantial viewership.

Earlier this year, RIL and Walt Disney inked an $8.5 billion agreement to merge Star India and Viacom18, forming a vast media conglomerate. This merger, pending approval from the Competition Commission of India (CCI) and the National Company Law Tribunal (NCLT), will unite over 100 channels and two major streaming platforms under one banner. The consolidation aims to streamline operations, reduce costs, and establish a comprehensive OTT destination capable of competing with YouTube in the ad-supported segment and Netflix and Prime Video in the subscription space.

If the merger proceeds, JioCinema will inherit a vast library of over 125,000 hours of content, encompassing entertainment, sports, and Hollywood films, including high-profile cricket events such as the IPL. This strategic move could provide JioCinema with a substantial edge in the fiercely competitive streaming market.

Neither Disney nor RIL has officially commented on the merger speculation. However, industry insiders believe that such a consolidation could significantly enhance JioCinema’s competitive stance in the Indian streaming sector.