istock.com/Robert Way
Disney Teams Up With Reliance Industries in Indian Media Venture
February 28, 2024
In a significant move, The Walt Disney Company has forged a partnership with India’s Reliance Industries, marking a departure from its solitary efforts to penetrate the Indian market. The deal positions Reliance Industries, led by Mukesh Ambani, as the dominant force alongside Disney in India’s media landscape, creating an “$8.5 billion entertainment juggernaut,” per Reuters.
Reliance Industries, boasting a market capitalization of $239 billion and exclusive rights to the immensely popular Indian Premier League cricket matches, holds a formidable position in India’s media sector. Analysts suggest that the joint venture, with its combined market share in advertising and streaming, will likely outpace its competitors, promising improved profitability through reduced content costs.
Under the agreement, Disney will merge its Indian operations with Viacom18, a subsidiary of Reliance Industries. This consolidation will see Reliance and Viacom18 holding a controlling stake of 63%, while Disney will own the remaining 37%. According to Disney’s announcement, Nita M. Ambani, chair of Reliance, and Uday Shankar, former chairman of Disney India, will spearhead the joint venture.
Disney’s endeavors in India date back to 1993, yet despite its global stature, it struggled to match the success of homegrown players. The acquisition of 21st Century Fox in 2019 marked a significant milestone, granting Disney access to coveted cricket rights, among other assets. However, setbacks ensued, notably with Reliance Industries securing the lucrative cricket rights in 2022, leading to a substantial loss in subscribers for Disney.
Nevertheless, Disney remains committed to the Indian market, citing it as a key growth area. The collaboration with Reliance Industries, a conglomerate with diverse interests spanning from petrochemicals to telecommunications, positions Disney to leverage Reliance’s deep understanding of the Indian market and extensive consumer base.
As the media landscape in India continues to evolve, the Disney-Reliance alliance is poised to reshape the industry, offering a compelling proposition in an increasingly competitive market.
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