The Ambani-Disney Merger: A New Era in Indian Streaming

India is witnessing a historic moment in the entertainment industry, as Reliance and Disney are finalising their mega-merger that will create a dominant media force in the country. The deal, worth $8.5 billion, will combine Reliance’s Viacom18 with Disney’s Star India, forming a joint venture that will have more than 120 channels and serve some 750 million customers across the country.

The merger is expected to benefit both parties, as they will leverage each other’s strengths and overcome their challenges. Reliance, owned by Asia’s richest man Mukesh Ambani, will gain distribution control of Star India’s channels, as well as exclusive rights to distribute Disney’s films and productions in India. Reliance will also inject $1.4 billion into the new company to help it grow.

Disney, on the other hand, will be able to tap into Reliance’s deep understanding of the Indian market and consumer, as well as its vast network of telecom and digital platforms. Disney will also reduce its losses from its streaming business in India, which has been struggling to compete with rivals like Netflix and Amazon Prime Video. Disney’s Hotstar service, which was inherited from its acquisition of Fox in 2019, saw a significant decline in subscribers and advertisers after Reliance outbid it for the rights to stream the popular Indian Premier League cricket tournament in 2022.

The merger will also create a formidable player in the streaming market, which has emerged as a key battleground in the entertainment industry. According to a report by Media Partners Asia, the combined entity of Reliance and Disney will capture 50% of the streaming market in India by 2025, leaving behind Netflix with 17% and Amazon Prime Video with 13%. The report also projected that the streaming market in India will grow from $1.5 billion in 2020 to $5 billion in 2025.

The merger will also usher in a new era of content creation and consumption in India, as the joint venture will have access to a rich portfolio of local and global content across genres and languages. The joint venture will also have exclusive rights to distribute Disney’s content in India, including its blockbuster franchises like Marvel, Star Wars, Pixar and National Geographic. The joint venture will also produce original content for the Indian audience, leveraging the talent and expertise of both Reliance and Disney.

The merger is expected to be completed by the end of this year or early next year, subject to regulatory approvals. Nita Ambani, Mukesh Ambani’s wife and the founder and chair of Reliance Foundation, will serve as the chairperson of the new company. The new company will have equal representation from both Reliance and Disney on its board of directors.

The Ambani-Disney merger is set to transform the Indian entertainment industry, creating a media giant that will offer unparalleled content and services to millions of customers. The merger is also a landmark agreement that heralds a new era in the Indian streaming market, where Reliance and Disney will lead the way.

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