RIL eyes JioCinema as sole OTT platform post Star-Viacom18 merger deal

In February this year, RIL and Disney agreed to merge Star and Viacom18, forming an $8.5 billion media giant with over 100 channels and two streaming platforms

Reliance Industries Ltd (RIL), which will control the merged Star-Viacom18 entity once it receives regulatory approvals, is considering to consolidate its streaming services under a single platform, JioCinema, according to a report by The Economic Times.

Despite Disney+ Hotstar having more downloads than JioCinema, RIL is exploring the possibility of integrating Disney+ Hotstar with JioCinema post-merger. Disney+ Hotstar, owned by Walt Disney’s Star India, boasts over 500 million downloads, whereas JioCinema, which is part of RIL-controlled Viacom18, has over 100 million downloads.

In February this year, RIL and Walt Disney reached an agreement to merge Star and Viacom18, creating an $8.5 billion media conglomerate that would encompass over 100 channels and two streaming platforms.

The company is also prepared to shut down channels in both Hindi and regional markets to address concerns from the Competition Commission of India (CCI) regarding the market dominance of the newly merged Star-Viacom18 entity. The final approvals from the CCI and the National Company Law Tribunal (NCLT) are still pending.

Significant subscriber base

RIL’s annual report reveals that JioCinema averaged 225 million users per month. In comparison, Sensor Tower reports that Disney+ Hotstar had 333 million monthly active users in Q42023, the report said.

As of June, Disney+ Hotstar had 35.5 million paid subscribers, a significant drop from its peak of 61 million when it featured content such as the Indian Premier League (IPL) and HBO.

Previously, RIL-controlled Viacom18 consolidated its OTT platforms, including Voot, Voot Select, and Voot Kids, under the Voot brand with JioCinema. This consolidation followed the transfer of JioCinema to Viacom18 through an NCLT-approved scheme of arrangement, which also saw RIL and Bodhi Tree Systems invest Rs 15,145 crore into Viacom18.

The report quoted a source as saying that consolidating into a single OTT platform is expected to reduce costs and create a comprehensive destination for OTT content. This move is likely to intensify competition with YouTube in the advertising-supported video-on-demand (AVOD) space, as well as with Netflix and Prime Video in the subscription-based video-on-demand (SVOD) sector.

“Having two OTT platforms is pointless as it will result in more expenses,” the source said.

Leading streaming platform

With the merger of Disney+ Hotstar and JioCinema, JioCinema will emerge as the leading streaming service in India, boasting the largest collection of entertainment, sports, and Hollywood content, totaling over 125,000 hours, the report stated.

The combined platform will hold significant cricket broadcasting rights, including the Indian Premier League, and feature content from Disney, HBO, NBC Universal, and Paramount Global.

RIL chairman Mukesh Ambani highlighted the impressive viewership numbers for the IPL on JioCinema, noting the platform’s rapid audience growth in a short period, as mentioned in the company’s annual report.

According to recent The Economic Times reports, Disney+ Hotstar and JioCinema have been valued higher than their parent companies’ traditional TV operations. Disney+ Hotstar’s valuation stands at Rs 16,040 crore, while JioCinema has been valued at Rs 24,186 crore following its transfer to a Viacom 18 subsidiary, the report said.