BUSINESS
Reliance Industries (RIL), which will control the Star-Viacom18 merged entity, is exploring the idea of having two over-the-top (OTT) platforms in its portfolio, targeting separate verticals, sources in the know said. The move is aimed at leveraging the digital boom in media and entertainment, even as Disney and Reliance are working on possible concessions to be given to secure the approval of the Competition Commission of India (CCI) for the $8.5 billion merger. Reliance has already indicated that it is ready to drop a few channels and freeze ad rates to ensure concerns raised by the CCI with regard to monopoly, industry sources said. On the digital side, Disney+ Hotstar, with over 500 million downloads and monthly active users in excess of 300 million, according to Google Play Store and Sensor Tower data respectively, may be pushed as an entertainment destination. JioCinema, with downloads of over 100 million and monthly active users of 225 million, could be a sports platform, persons in the know said. Another option could be pushing Hotstar as a premium OTT platform, mainly for English content, while JioCinema will be the destination for mass content including Hindi movies, Hindi shows and the Indian Premier League. A potential rebranding exercise to ensure the two platforms are from one media house could also be considered, sources in the know said. When contacted, Disney Star declined comment, while Reliance and Viacom18 were not immediately available for comment. Experts say that any potential unification of the two OTT platforms will be gradual. “I don’t think Reliance will be in a hurry to bury the Hotstar brand. It has an identity of its own and is a larger platform than JioCinema. But over time, Reliance may want to keep one brand,” Sajal Gupta, chief executive officer of Gurugram-based media consultancy Kiaos Marketing , said. According to media experts, the Disney and Reliance JV will create an entity with a turnover of nearly Rs 29,000 crore and a combined viewership market share of 35-40% across 115 channels and two video streaming platforms. Disney+ Hotstar and JioCinema will have dominant market shares in subscription and advertising video-on-demand segments. This is the larger than the now-junked Zee-Sony combine which would have had a turnover of Rs 15,000 crore and a combined market share of 30% across 70 channels and two video streaming platforms, according to media analysts and experts tracking the market. The CCI has raised concerns about the monopoly that the merged entity will have in sports broadcasting, though Reliance is understood to have said that the rights are time-bound and will come up for commercial bidding once the tenure of the rights with it come to an end. Follow us on Twitter , Instagram , LinkedIn, Facebook None
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