Reliance-Disney dalliance to stir up streaming scene
The proposed transaction between Reliance and Disney is set to shake up the streaming industry, as it will grant Reliance access to Disney’s vast English language libraries, including its revered Marvel catalogue. Reliance already boasts content from HBO and holds a strong position in regional languages, particularly the four South Indian languages, Marathi, and Bengali. The inclusion of sports programming is also a priority for the conglomerate.
The combined streaming entity of Reliance and Disney is expected to be three to four times larger in terms of total hours of programming than current leader Netflix. Additionally, there are talks of potentially acquiring struggling niche language-specific platforms to further expand their reach.
Although there were rumors circulating about Walt Disney possibly exiting the Indian market, the company’s CEO, Bob Iger, recently affirmed their commitment to staying in India.
According to a report by Mint, discussions between Reliance and Disney have reached an advanced stage, with plans for Disney to transfer most of its entertainment assets, both linear television and digital businesses, into a new entity called Disney Star. Reliance is anticipated to acquire a 60% stake in this venture, valuing Disney’s India assets at approximately $3.8 billion to $4 billion.
When approached for comments, Disney declined to provide a statement, while Reliance did not respond to queries.
Uday Sodhi, a senior partner at Kurate Digital Consulting, highlighted the significance of this collaboration, stating, As far as English language programming goes, all the brands that matter, be it Disney, Marvel, Showtime, Warner HBO, and ViacomCBS, will be under one umbrella.
The addition of Disney’s extensive catalogue is expected to attract families and children to the platform. The competition for premium English content has intensified in India, following JioCinema’s content deals with Warner, HBO, and NBCUniversal last year. These platforms target discerning viewers who are willing to pay more for quality content. A recent report by media consulting firm Ormax revealed that the number of Indians consuming international English content has soared to 85.2 million from 19.1 million prior to the pandemic.
Experts in the media and entertainment industry speculate that the collaboration between Disney India and Reliance will dominate the sports front as well. With both entities holding satellite and digital rights to high-profile sporting events such as the IPL, in addition to other cricket and tennis properties, competition for these rights will be considerably limited. Anuj Gandhi, media analyst and founder of Plug and Play Entertainment, mentioned, Reliance has both a repertoire and an interest in sports. The sense is that they will stick to it, leaving things like, say, movie buying to players such as Netflix and Prime Video.
Furthermore, the dominance of the combined entity could potentially bring some semblance of order to India’s fragmented OTT market.
Opportunities may also arise for the acquisition of smaller players in the industry. A senior executive at a rival platform commented anonymously, It would be a great strategy to look at acquiring smaller players, say the likes of ALTBalaji that has a certain mass audience base or Hoichoi that is a regional player. If these opportunities are leveraged, it would be a win-win for all.
The collaboration between Reliance and Disney, with the integration of Disney’s extensive English language content and Reliance’s own entertainment channels, is likely to have a profound impact on the streaming industry in India. This partnership will provide viewers with an array of options and potentially streamline the rapidly expanding OTT market.
