On Saturday, September 28, 2024, Reliance Industries Ltd announced a significant development in the Indian entertainment landscape. The Ministry of Information and Broadcasting has granted approval for the transfer of non-news and current affairs TV channel licenses from Reliance’s Viacom18 Media Private Limited to Disney’s Star India Private Limited. This order, issued on Friday, September 27, 2024, comes with specific conditions set forth by the Competition Commission of India (CCI), signalling a step forward in the merger process between two industry giants.
This approval follows the CCI’s endorsement of a monumental merger worth over ₹70,000 crore (approximately $8.5 billion) that was announced on August 28, 2024. The merger is poised to create one of India’s largest streaming entities, amalgamating both television and digital platforms to boast a combined viewership exceeding 750 million across 120 television channels and two streaming services.
The merger was first introduced in a media release dated February 28, 2024, titled “Reliance and Disney Announce Strategic Joint Venture to Bring Together the Most Compelling and Engaging Entertainment Brands in India.” This ambitious partnership includes Reliance Industries Limited (RIL), Viacom18 Media Private Limited, and Digital18 Media Limited, alongside The Walt Disney Company’s Star India Private Limited and Star Television Productions Limited.
Under the terms of the merger, Reliance will hold a significant 63.16% stake in the combined entity, while Walt Disney will control the remaining 36.84%. This strategic collaboration is anticipated to enhance their competitive edge against established players such as Netflix, Amazon Prime Video, and Sony Liv in the fast-evolving digital entertainment market.
The merger is expected to reshape the Indian entertainment ecosystem. By pooling resources and expertise, the new entity aims to deliver a wider array of engaging content, catering to diverse viewer preferences across genres. With a combined infrastructure of over 120 TV channels and two robust streaming services, audiences can look forward to enhanced programming and potentially more original content.
Moreover, this merger also holds significant implications for content creators and advertisers. As the new entity consolidates its position in the market, there is likely to be an influx of investment in content production, leading to new opportunities for local creators and storytellers. The combined platform could serve as a powerful vehicle for promoting regional content, thus enriching India’s rich tapestry of languages and cultures.
As the merger approaches completion, expected in the final quarter of 2024 or the first quarter of 2025, leadership roles within the newly formed entity have been defined. Nita Ambani, a prominent figure in Reliance’s corporate structure, is set to become the chairperson of the new organisation, bringing her extensive experience in brand management and strategic development. Uday Shankar, a former Walt Disney executive known for his innovative approach to media, will assume the role of vice chairperson. Their leadership is anticipated to drive the entity towards new heights of success in an increasingly competitive landscape.
The approval of the license transfer marks a pivotal moment in the evolution of India’s entertainment industry. With the merger of Reliance and Disney, the new entity is not only set to enhance viewer experience through a rich variety of content but also to redefine the competitive dynamics within the market. As Reliance Industries Ltd and The Walt Disney Company join forces, the entertainment landscape in India is on the brink of a transformative era that promises growth, innovation, and a wealth of choices for audiences across the nation.