Disney is partnering with Mukesh Ambani, Asia’s wealthiest individual, to establish a colossal media giant in India, boasting an ambitious target audience of over 750 million viewers.
Reliance Industries, led by billionaire Mukesh Ambani, and Disney are merging their digital streaming platforms and consolidating 100 TV channels in India, creating a joint venture valued at approximately $8.5 billion, as announced in a joint statement on Wednesday.
The alliance comes after prolonged speculation about a potential deal, fueled by Disney’s efforts to tap into the vast opportunity presented by a nation with a population exceeding 1 billion, where English is widely spoken. Disney made a significant foray into India in 2019 with the acquisition of most of 21st Century Fox, including the extensive Star India network.
Under the terms of the venture, Reliance will hold slightly over 63% of the new entity, primarily through its Viacom18 subsidiary, while Disney will retain the remaining stake.
Mukesh Ambani expressed, “This is a landmark agreement that heralds a new era in the Indian entertainment industry.” His business empire, valued at over $236 billion, spans retail, technology, and renewable energy. The joint venture, chaired by Nita M. Ambani, will blend Disney’s “acclaimed films and shows” with Viacom18’s “renowned productions and sports offerings,” catering not only to the Indian audience but also to the global Indian diaspora.
Disney’s Challenges in the Indian Market Disney faced challenges in India’s vibrant media and entertainment sector, notably losing the digital rights to stream the immensely popular Indian Premier League cricket matches to Ambani’s conglomerate in 2022. This setback impacted Disney’s streaming app in India, Hotstar, resulting in a substantial loss of subscribers and discontinuation of HBO content streaming.
The latest financial year saw a decline in revenue per Hotstar subscriber, dropping from 88 cents in 2022 to 66 cents on average, compared to $5.93 for a non-US subscriber to Disney+. Hotstar’s subscriber numbers also witnessed a 39% decline to 37.6 million.
The collaboration with one of India’s leading conglomerates is seen as a strategic move for Disney to revitalize its presence in the Indian market. Analysts, including Mihir Shah from research firm Media Partners Asia, believe that the merger “creates a powerful entity poised to enhance scale, profitability, and competitiveness in a converged TV and streaming video landscape.”
