JioCinema could absorb Disney+ Hotstar under Reliance's merger plans
Reliance Industries Limited (RIL) is reportedly planning to merge Disney+ Hotstar with its own streaming service, JioCinema, after the merger of Star India and Viacom18. This decision comes as part of RIL's strategy to consolidate content and resources into a single, more robust platform. The aim is to streamline services, reduce operational costs, and enhance efficiency by eliminating the need for two separate streaming services.
Merger to strengthen competition against global OTT giants
The proposed merger of Disney+ Hotstar and JioCinema is expected to strengthen RIL's competitive position against global OTT giants like YouTube, Netflix, and Amazon Prime Video. As per Google Play Store data, Disney+ Hotstar has over 500 million downloads while JioCinema has surpassed the 100 million download mark. The combined platform could potentially reach a larger audience base.
RIL's previous consolidation moves in OTT sector
This is not the first time RIL has consolidated its OTT platforms. Previously, Viacom18, controlled by RIL, merged its OTT platforms under the Voot brand with JioCinema. The merger involved three OTT platforms: Voot, Voot Select and Voot Kids. Prior to this, JioCinema was transferred to Viacom18 through a scheme sanctioned by the National Company Law Tribunal (NCLT).
User reach and subscription details of both platforms
According to RIL's annual report, JioCinema had an average monthly reach of 225 million users. In contrast, Disney+ Hotstar recorded 333 million monthly active users in the fourth quarter of 2023, as per Sensor Tower. However, Disney+ Hotstar's paid subscribers dropped to 35.5 million in June from a peak of 61 million when it featured content like the Indian Premier League (IPL) and HBO.
Merger to create India's largest streaming app
The merger of Disney+ Hotstar with JioCinema will result in India's largest streaming app, boasting over 125,000 hours of entertainment, sports, and Hollywood content. The platform will feature key cricket rights including the Indian Premier League (IPL), as well as content from Disney, NBCUniversal and Paramount Global. In February, RIL and Walt Disney agreed to combine Star and Viacom18 to create an $8.5 billion media giant. The deal is pending clearance from authority, including Competition Commission of India (CCI).
