Mumbai: Reliance Industries (RIL) is reportedly considering consolidating its streaming services into a single platform, JioCinema, following the merger of Star and Viacom18, pending regulatory approvals. Insiders reveal that RIL is inclined to merge Disney+ Hotstar with JioCinema, despite Disney+ Hotstar boasting higher download numbers.

Disney+ Hotstar, owned by Walt Disney's Star India, has over 500 million downloads on the Google Play Store, compared to JioCinema's 100 million. Despite these figures, RIL is expected to prioritize JioCinema after the merger, consolidating the platforms under one brand.

In February, RIL and Walt Disney finalized agreements to merge Star and Viacom18, creating an $8.5 billion media conglomerate with over 100 channels and two streaming platforms. However, to alleviate concerns of market dominance from the Competition Commission of India (CCI), the company may shut down channels in Hindi and regional markets. The merger awaits approval from both the CCI and the National Company Law Tribunal (NCLT).

JioCinema, according to RIL's annual report, has a monthly reach of 225 million users, while Disney+ Hotstar recorded 333 million monthly active users in Q4 2023. Although Disney+ Hotstar once had 61 million paid subscribers during its peak—when it streamed content like the Indian Premier League (IPL) and HBO—it now holds 35.5 million paid subscribers.

This merger follows a previous move by RIL-controlled Viacom18 to consolidate its OTT services under the Voot brand with JioCinema. Viacom18 had previously operated three OTT platforms: Voot, Voot Select, and Voot Kids. JioCinema had also been transferred to Viacom18 via an NCLT-sanctioned agreement that saw RIL and Bodhi Tree Systems invest Rs.15,145 crore into Viacom18.

The rationale behind consolidating to one OTT platform, according to sources, is cost savings and the creation of a comprehensive streaming destination that can rival YouTube in the advertising-based video-on-demand (AVOD) sector and compete with subscription-based services like Netflix and Prime Video.

"Maintaining two OTT platforms is financially inefficient," a source stated. "Merging them will build a stronger platform, capable of hosting a wide array of content and attracting a larger audience."

Upon merging Disney+ Hotstar with JioCinema, the latter is poised to become India’s top streaming app, featuring over 125,000 hours of content across entertainment, sports, and Hollywood. It will also retain the rights to key cricket events like the IPL and feature content from Disney, HBO, NBCUniversal, and Paramount Global.

Highlighting JioCinema's potential, RIL Chairman Mukesh Ambani said in the company’s annual report, "Record viewership of the Indian Premier League on JioCinema showcases our ability to rapidly scale up audiences on our digital platform."

Recent valuations further demonstrate the strength of the OTT platforms. Disney+ Hotstar has been valued at Rs.16,040 crore, while JioCinema was valued at Rs.24,186 crore when transferred to Viacom18.

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