Reliance Industries Limited (RIL) is reportedly planning a significant merger involving Star India’s Disney+ Hotstar.
According to media reports, RIL might consolidate its streaming services post-merger, with a strong focus on JioCinema.
This shift could potentially signal the end of Disney+ Hotstar, as its content may migrate to JioCinema, creating a single, unified platform.
Strategic Shift to Enhance Efficiency
RIL is believed to view operating two separate platforms as costly and less efficient.
By merging Disney+ Hotstar with JioCinema, the company aims to establish a powerful streaming service capable of competing with giants like Google’s YouTube, Netflix, and Amazon Prime Video.
Currently, Disney+ Hotstar is a top streaming service in India with over 500 million downloads on Google Play Store, while JioCinema has more than 100 million downloads.
A merger would result in a formidable OTT platform.
Regulatory Approvals and Market Impact
The potential merger follows an earlier deal involving the merger of Star India and Viacom18.
The combined media entity could operate over 100 TV channels and two streaming platforms.
However, RIL appears inclined to maintain only one OTT service.
The merger is still awaiting approval from regulatory bodies like the Competition Commission of India and the National Company Law Tribunal (NCLT).
As of last year, JioCinema had an average of 225 million monthly users, while Disney+ Hotstar had 333 million active users in the last quarter of 2023.
Decline in Disney+ Hotstar Subscribers
The report also highlights a decline in Disney+ Hotstar’s paid subscribers, attributed to the loss of popular content like IPL and HBO.
