Mukesh Ambani, is aiming to establish the largest media empire in India, with more than 100 TV channels and two streaming platforms which could result from the merger of Jio Cinema and Disney Hotsar, two domestic giants in the digital streaming space.
According to Economics Times report, negotiations to merge Reliance Industries, led by Mukesh Ambani, with Walt Disney are currently in the next phase. Additionally, Star India and Viacom18's merger agreement is nearly done.
Disney Plus Hotstar, with whom Jio Cinema had previously purchased the IPL rights, was a direct competitor of Jio Cinema. Following the IPL and FIFA World Cup, there was a notable drop in Hotstar subscribers. On the other hand, Disney Hotstar acquired the rights of the Asia Cup and Cricket World Cup from Jio Cinema. Now that Mukesh Ambani's company is merging with Disney Hotstar, it is important to note that the company was suffering significant losses in the competition with Jio Cinema.
As per the reports, following the Star-Viacom18 merger, Reliance could hold a 51 percent stake. Additionally, Disney could receive 40 percent of the shares, meaning that Reliance Industries, led by Mukesh Ambani, would hold the majority ownership.
Additionally, Netflix and Amazon Prime may find it more difficult to compete with Jio Cinema's potential low-cost plans. Jio may also launch low-cost add-on plans with Jio recharge, aimed at both telecom and OTT users.