A day after anti-trust regulator CCI approved the mega merger of media assets of RIL and Walt Disney, Reliance Chairman Mukesh Ambani on Thursday (29) said the deal marks the beginning of a new era in India’s entertainment industry.
Welcoming Disney to the Reliance family, Ambani said just like Jio and the retail business, the expanded media business will be an invaluable growth centre in the Reliance ecosystem.
“Let us now talk about our partnership with Disney. This marks the beginning of a new era in India’s entertainment industry. We are combining content creation with digital streaming,” he said at RIL’s 47th AGM.
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On Wednesday (28), Competition Commission of India (CCI) approved the merger of media assets of Reliance Industries and The Walt Disney Co to create the country’s largest media empire worth over $8.43 billion.
Reliance, through holding firm Network 18, owns TV18 news channels as well as a plethora of entertainment (under the ‘Colors’ brand) and sports channels.
“We will provide world-class digital entertainment across the spectrum,” Ambani said, adding, “we will cater to every consumer’s taste. We are excited about this partnership”.
The joint entity would have two leading OTT streaming platforms Disney Hotstar and Jio Cinema.
“We are combining content creation with digital streaming,” Ambani said, adding, “our digital-first approach will deliver unparalleled content at affordable prices”.
The deal, announced six months ago, faced scrutiny by the anti-trust regulator and the approval came after both parties proposed certain modifications to the original transaction structure.
Under the deal, Mukesh Ambani-led Reliance Industries Ltd (RIL) and its affiliates will hold 63.16 per cent of the combined entity that will house two streaming services and 120 television channels.
The Walt Disney will hold the remaining 36.84 per cent stake in the combined entity, which will also be India’s largest media house.
Reliance Industries has also agreed to invest close to $1.39 billion into the joint venture to give it the muscle to fight rivals like Sony and Netflix.
Nita Ambani, wife of billionaire and RIL Chairman Mukesh Ambani will head the joint venture, while Uday Shankar will be the Vice Chairperson.
Ambani further said Reliance’s media and entertainment business has achieved over $ 1.2 billion of revenue.
Its OTT platform JioCinema in a short span of time has reached major milestones in the digital sports and entertainment sector. The IPL season held earlier this year — the second to be broadcast on JioCinema — was a huge success, reaching 62 crore Indians.
“Total viewership grew 50 per cent. This made it the most-watched livestream event in the world. This success continued during the Olympics,” he said.
Terming JioCinema’s new subscription pack as a “game-changer”, Ambani said in just 100 days it crossed 15 million paying subscribers. “This is the fastest growth in this category,” he said.
Its flagship Hindi channel Colors reached its highest market share in 12 years, climbing to the number 1 position last year.
As part of his address, Ambani said, its news business is reaching “new heights” leading in both general and business news.
“We are the only network in India with global ambitions,” he said.
Reliance through News18 Network operates a bouquet of 16 news channels in Hindi, English and regional languages, including CNBC-TV18 and CNN-News18.
