Disney and Reliance Industries are progressing towards a merger of their substantial Indian TV and streaming enterprises. The potential combination, encompassing rival streaming platforms, India’s leading pay-TV platform, and over 100 linear TV channels, has the capacity to significantly reshape the Indian media and entertainment landscape.
According to sources not disclosed by Reuters on Thursday, the two companies have engaged lawyers to address potential anti-trust concerns likely to arise from the merger. The law firms involved were named by the agency.
Reuters also reported that a non-binding merger term sheet had been signed by the parties at the close of December.
Disney solidified its position as a major player in the Indian entertainment sector with the acquisition of 21st Century Fox, which included the Star pay-TV platform and the highly popular Hotstar streaming startup. Following the acquisition, Disney merged Hotstar into its Disney+ platform, creating a mass-market streaming service with an affordable pricing structure.
Disney’s dominance faced a challenge from the Ambani-controlled Viacom18 group, with its suite of Jio-branded operations spanning mobile phones, broadband internet, and the streaming service JioCinema.
Despite this, Disney encountered a setback in 2022 when it failed to secure the streaming rights for the 2023-2027 seasons of the Indian Premier League cricket tournament, losing users to JioCinema. Jio, backed by Reliance Industries, profited from its financial strength by becoming the streaming home for HBO, Max Original, and Warner Bros content in India, thwarting the potential launch of HBO Max in the country.
If the merger is finalized, the combined entity, likely majority-owned by Reliance-Viacom18-JioCinema, would wield significant influence. However, challenges related to anti-monopoly regulations and potential concessions in IPL rights may arise during the merger process.
Another variable in this landscape is the potential mega-merger involving Sony and Indian TV and streaming conglomerate Zee Entertainment Enterprises, which has been in progress for more than two years. The completion of the Sony-Zee deal could impact the regulatory approval process for the potential Disney-Reliance merger.
