Imagine having access to hit shows like The Bear, Succession, Deadpool, and reality TV like Bigg Boss, all on a single platform. For Indian viewers, this entertainment dream could soon become a reality, as a major merger between India’s Reliance Industries and entertainment powerhouse Walt Disney is in the works.
This $8.5 billion (£6.5 billion) deal aims to create India’s largest entertainment company, potentially controlling 40% of the TV market and reaching 750 million viewers across 120 channels. However, while the merger promises a content-rich future, it also raises concerns over monopolistic dominance in the entertainment and advertising sectors.
The merger would combine Disney’s Star India, which operates over 70 TV channels in multiple languages, and Reliance’s Viacom18, which runs 38 channels. Both companies own major streaming platforms—Hotstar and JioCinema—and have a stronghold on the broadcasting rights for major Indian sports events, including the massively popular Indian Premier League (IPL) cricket tournament. This control would put the new entity in a commanding position, with 75-80% of the Indian sports streaming market, according to Elara Capital.
“The combination of Disney and Reliance creates a media juggernaut,” says Karan Taurani, an analyst at Elara Capital. “Their dominance, particularly in sports, will give them a large slice of India’s advertising market, where sports is a key driver of viewership.”
While consumers could benefit from diverse and affordable content, industry experts are wary of the merger’s impact on competition. “A giant in the market with competitors barely holding a single-digit market share will certainly catch the eye of competition regulators,” says KK Sharma, former head of the Competition Commission of India’s (CCI) merger control division.
The CCI has approved the deal but imposed voluntary modifications—likely related to keeping advertising prices in check during live sports events like cricket. Failure to adhere to these modifications could lead to stricter regulations, including splitting the company if it becomes a threat to competition, adds Sharma.
For both Disney and Reliance, the merger is a strategic move to dominate the growing Indian streaming market, which is increasingly competitive with players like Netflix, Amazon Prime, and dozens of other platforms. Reliance, known for its ability to capture price-sensitive consumers, could offer comprehensive entertainment bundles at affordable prices, including access to sports, movies, and international content.
“Reliance’s strategy of offering things at throwaway prices usually destroys competitors’ value,” says media expert Vanita Kohli-Khandekar. With its previous success offering low-cost mobile data through Jio, the company’s chairman Mukesh Ambani has promised “unparalleled content at affordable prices” for consumers in this new venture as well.
However, despite the merger’s potential, the new company will face stiff competition from global tech giants like Google, Meta, and Amazon, all of which have deep pockets and a strong presence in India’s digital video market. In 2022-2023, YouTube had a dominant 88% share in India’s premium video-on-demand market.
The battle between this new Reliance-Disney entity and the global tech majors will likely revolve around digital advertising revenue, which currently flows primarily to Google and Meta. With its new scale, the merged company hopes to redirect a substantial share of this revenue to its own coffers.
“Now, it’s an even fight,” says Kohli-Khandekar. But while the new entity will have the scale to compete, Kohli-Khandekar warns that it will still need to deliver quality content. “If the market becomes more focused on views rather than subscriptions, programming quality might only shine on one or two apps,” she adds.
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