SUMMARY
- RIL is set to continue its OTT presence solely with JioCinema following the exclusive merger with Star India and Viacom18.
- Disney+ Hotstar was owned by Star India, with 333 million active users.
- Disney+ Hotstar’s vast options of over 125,000 hours of content—across various genres from sports to Hollywood saw a shift to JioCinema.
Reliance Industries Limited (RIL) is set to establish its OTT presence with JioCinema becoming the only streaming service following the merger of Star India and Viacom18. The strategic move aims to streamline activities, reduce costs, and create a powerful presence over rivals globally, such as Netflix and Amazon Prime.
Till June 2024, Disney+ Hotstar was owned by Star India, with 333 million active users but saw a drastic drop from 61 million to 35.5 million in the number of paid ones due to the loss of IPL and HBO streaming rights. Contrary to that, JioCinema has gained popularity, with RIL reporting an average of 225 million monthly users in 2023, ahead of its acquisition of IPL digital rights, resulting in record-breaking viewership by the audience.
Considering the merger of Star India and Viacom18, valued at $8.5 billion, Disney+ Hotstar’s vast options of over 125,000 hours of content—across various genres from sports to Hollywood — saw a shift to JioCinema. Hence, the latter emerged as a dominant player in India’s OTT market, overtaking its competitors.
The merger will also allow RIL to focus on a single platform, enhancing operational efficiency at the same time. Talking about its Competitors such as YouTube, Netflix, and Amazon Prime, they may face intensified competition, especially in the Indian market where JioCinema’s combination of sports and entertainment content specifically targeting the Indian audience can draw a broader audience.
The merger still awaits regulatory approvals, however, if successful, JioCinema could become India’s largest streaming service.
