JioCinema Will Shut Down & Merge With Disney+Hotstar To Become India's Biggest OTT Platform


Mohul Ghosh

Mohul Ghosh

Aug 20, 2024


Reliance Industries Limited (RIL) is reportedly considering a significant shift in its streaming strategy by merging Disney+ Hotstar’s content with JioCinema, according to a report by The Economic Times. This move could result in a single, more robust streaming platform under JioCinema, consolidating the vast array of content currently spread across two separate services.

JioCinema Will Shut Down & Merge With Disney+Hotstar To Become India's Biggest OTT Platform

The Rationale Behind the Merger

Disney+ Hotstar, owned by Walt Disney’s Star India, is one of India’s leading streaming platforms, boasting over 500 million downloads on the Google Play Store. In contrast, JioCinema, owned by Viacom18 (controlled by RIL), has more than 100 million downloads. Despite the disparity in user numbers, RIL sees maintaining two separate platforms as costly and inefficient. By combining them, RIL aims to build a more competitive streaming service that can take on giants like YouTube, Netflix, and Amazon Prime Video.

This potential consolidation follows a significant merger deal earlier this year between RIL and Walt Disney, in which Star India and Viacom18 joined forces to create a media behemoth valued at approximately $8.5 billion. This new entity would oversee more than 100 TV channels and two streaming services. However, RIL appears to favor operating a single platform, likely under the JioCinema brand.

Awaiting Regulatory Approval

The merger plan is currently under review by key regulators, including the Competition Commission of India (CCI) and the National Company Law Tribunal (NCLT). To alleviate concerns about market dominance, RIL has expressed a willingness to shut down some TV channels, particularly in Hindi and regional markets.

RIL’s 2023 annual report highlighted that JioCinema had an average of 225 million monthly users, while Disney+ Hotstar recorded 333 million active users in the last quarter of 2023. Despite Disney+ Hotstar’s larger user base, it has seen a decline in paid subscribers, dropping from 61 million at its peak to 35.5 million by June. This drop is attributed in part to losing key content rights, including the Indian Premier League (IPL) and HBO shows.

JioCinema’s Rapid Growth

In contrast, JioCinema has been rapidly expanding, particularly after acquiring the digital rights to the IPL, which resulted in record-breaking viewership on the platform. RIL Chairman Mukesh Ambani emphasized this growth, noting that JioCinema’s success with the IPL demonstrated its capability to attract large audiences quickly.

If Disney+ Hotstar’s content is integrated into JioCinema, the latter could become India’s largest streaming service, offering over 125,000 hours of entertainment, sports, and Hollywood content. The new platform would include crucial sports rights, such as the IPL, and content from major studios like Disney, HBO, NBCUniversal, and Paramount Global.

RIL has a history of consolidating platforms, having previously merged services like Voot into JioCinema. Recently, JioCinema was transferred to Viacom18 following a court-approved deal involving a ₹15,145 crore investment from RIL and Bodhi Tree Systems into Viacom18.

In summary, RIL’s strategy to merge Disney+ Hotstar with JioCinema reflects a broader trend of consolidation in the streaming industry, aiming to create a more efficient and competitive service in a rapidly evolving market.


Mohul Ghosh
Mohul Ghosh
  • 1719 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online