In a move that has sent shockwaves through the Indian media industry, Reliance’s portfolio Viacom18 and Disney are set to merge their Indian assets. The resulting entity is expected to dominate the country’s on-demand streaming service market, capturing an impressive 85% of the audience. This merger will also give the combined company exclusive digital and broadcast rights to some of the most popular sporting events in India.
The Impact on Streaming Services
Cricket match streaming has been a significant driver of new users for streaming platforms in India. With Reliance and Disney securing numerous cricket rights, their merged entity will have a stranglehold on this lucrative market. This move is expected to pose significant challenges to rival services such as Netflix, Amazon’s Prime Video, Apple, Sony, and Zee.
Key Sporting Events Under the Merge
The combined new entity will have exclusive digital and broadcast rights to some of the key sporting events in India, including:
- IPL (Indian Premier League): The next four years of the popular cricket tournament
- ICC (International Cricket Council) Events: Flagship tournaments such as the World Cup and Champions Trophy
- Domestic Indian Cricket: A wide range of domestic cricket tournaments
- FIFA World Cup: Exclusive rights to the FIFA World Cup
- Premier League: Broadcast rights to the Premier League
- Wimbledon: Exclusive broadcast rights to Wimbledon
Market Leadership
The merged unit will also have exclusive India access to Disney’s movies and productions as well as the mouse company’s wide catalog of content. This move is expected to give the combined entity a significant market leadership within the Indian OTT (Over-The-Top) market, with an estimated 85% monthly active OTT user base.
TV Market Dominance
The merged operations will also command about 49% of the broadcasting market in India, with Star, part of Disney’s India property, commanding 41% of the broadcast market. The combined entity will feature some 120 TV channels and have a significant presence in the Hindi-speaking TV audience market.
Reaching 750 Million Users
In a statement Wednesday, Disney and Reliance said they expect to reach 750 million users in India with the merged entity. This move is expected to have a significant impact on the Indian media industry and pose bigger challenges to rival services.
Market Impact
The merger of Viacom18 and Disney’s Indian assets will have a significant impact on the market, making it difficult for rival services to compete. The combined entity will have exclusive digital and broadcast rights to some of the most popular sporting events in India, including cricket matches.
Future Outlook
As the media landscape continues to evolve, it is expected that the merged entity will play a significant role in shaping the future of Indian media. With an estimated 85% monthly active OTT user base, the combined company is well-positioned to dominate the market and pose bigger challenges to rival services.
Sources
- Morgan Stanley analysts
- Bernstein analysts
- Bank of America analysts
