Disney Joins Forces with Mukesh Ambani for New Media Giant in India
Disney and Reliance Create Media Venture
New Delhi/London – Disney, in partnership with Asia’s richest man, Mukesh Ambani, has announced the creation of a new media giant in India. This partnership aims to reach over 750 million people in the country, making it a powerful entity in the Indian entertainment industry.
Expansion Opportunities in India
Disney’s significant push into the Indian market began in 2019 when it acquired 21st Century Fox, including the Star India network. However, the company faced challenges, including the loss of the digital rights to stream the Indian Premier League cricket matches to Ambani’s conglomerate.
These setbacks impacted Disney’s streaming app, Hotstar, resulting in a decline in subscriber numbers. Furthermore, the halt of streaming HBO content by Hotstar also affected the company. Amidst these challenges, Disney’s TV business in India remained strong.
Merging Digital Platforms and TV Channels
Reliance Industries and Disney have come together to combine their digital streaming platforms and 100 television channels in India. This joint venture, valued at approximately $8.5 billion, will make Reliance the majority shareholder with over 63% ownership.
In the joint venture, Disney will combine its acclaimed films and shows with Viacom18’s renowned productions and sports offerings. This collaboration aims to cater to the vast Indian diaspora across the globe.
Opportunities in the Indian Entertainment Industry
Mukesh Ambani, the founder of Reliance Industries, expressed his enthusiasm about the agreement, stating, “This is a landmark agreement that heralds a new era in the Indian entertainment industry.” Ambani’s diverse business empire spans retail, technology, and renewable energy and is valued at over $236 billion.
Leadership and Potential for Long-Term Value
Nita M. Ambani, the wife of Mukesh Ambani, will serve as the chairperson of the joint venture. Disney CEO Bob Iger expressed the company’s excitement for the opportunities in the Indian market, stating, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company.”
Analysts’ Perspective
Industry analysts have recognized the potential of this merger to create a powerful entity in the converged TV and streaming video landscape. Mihir Shah, vice president of research firm Media Partners Asia, stated, “The merger…creates a powerful entity poised to enhance scale, profitability, and competitiveness.”
This story has been updated with additional information.
