The News
Indian regulators approved a $8.5 billion merger between multinational Reliance and Disney on Wednesday, paving the way for a massive streaming giant to rival Amazon’s Prime Video and Netflix in the country.
Regulators were initially concerned that the merger would give the two companies excessive control over rights for cricket broadcasting, India’s most popular sport, hurting advertisers, but gave the green light after the companies offered concessions.
The merger, which will create India’s largest media company, strengthens the influence of Reliance owner Mukesh Ambani — Asia’s richest person — on India’s $28 billion media and entertainment sector, Reuters noted.
SIGNALS
New streaming mega-service will dominate in competitive market
The Disney-Reliance merger places the company “miles ahead” of its streaming competitors, Rest of the World noted, as it brings together 120 TV channels and India’s two most popular streaming apps. The new company will absorb around 31% of the streaming user base in India, according to data analytics company Comscore — more than both Netflix and Prime Video combined. Netflix has failed to gain mass appeal in India, with its premium plan five times more expensive than those offered by Reliance and Disney. While Netflix ranks highest in India for the amount of time audiences spend on the platform, the new merger positions Disney-Reliance to overtake in this area as well, the outlet argued, as well as in the variety of shows offered.
Merger boosts Disney and Reliance in heated battle for cricket viewers
Cricket’s fanatical following among India’s 1.4 billion population makes the sport a lucrative prize for streaming services in the country, with the merger likely giving the companies a coveted edge, CNBC reported.
Disney’s Indian television business had struggled with subscriber losses since Reliance had bought back the rights to cover the Indian Premier League, one of the most-watched sporting events in the world, in 2022. With the new entity expected to draw more than 750 million viewers, Disney could be on track to regain sports audiences — likely further disadvantaging Netflix, which despite recent forays into live broadcasting in the US, remains a long way behind in sports-obsessed India.