Jio, Disney+ Hotstar, Apple and Airtel - can it get bigger than this for Indian streaming?
Jio, Disney+ Hotstar, Apple and Airtel - can it get bigger than this for Indian streaming?
Is there space for the Underdogs?
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A Major Shift in India’s Media Landscape: CCI Approves the Reliance-Disney Merger
India’s media landscape is about to witness a seismic shift. After six months of rigorous scrutiny, the Competition Commission of India (CCI) has officially approved the merger of Reliance Industries and Walt Disney's media assets, a deal valued at over Rs 70,000 crore. This approval paves the way for the creation of India’s largest media powerhouse, a development set to redefine the streaming and broadcast ecosystem across the country. We had analyzed this deal and the potential “monopolistic” nature of it earlier.
CCI’s Scrutiny and Conditions
The approval from the CCI didn't come easy. Reliance and Disney reportedly faced over 100 questions from the regulatory body, with the primary concern being how the merger could impact competition, particularly in the realm of sports broadcasting and streaming services.
The CCI expressed apprehension over the consolidation of cricket telecast rights and whether this could lead to anti-competitive practices. Their biggest worry: that the merger would result in a dominant market player with considerable negotiating power over advertising and subscription rates.
Adjustments to Address Concerns
To mitigate these concerns, Reliance and Disney reportedly made concessions. While the specific details remain confidential, sources suggest that both companies committed to not inflating advertising rates excessively for streamed cricket matches. Additionally, they have promised continued free access to select sporting events, aiming to convert these viewers into paying subscribers over time.
The CCI noted the highly concentrated nature of the sports TV channel segment, particularly cricket streaming, where both Reliance and Disney hold significant sway. By agreeing to these adjustments, the merger was given a green light, albeit with modifications.
The New Powerhouse: 2 Streaming Giants, 120 Channels
The merger creates a media behemoth under which Reliance, led by Mukesh Ambani, will hold a controlling 63.16% stake, while Disney retains a 36.84% share, making it a significant minority partner. The combined entity will encompass a staggering 120 television channels alongside two major streaming platforms.
On the Reliance side, assets from Network 18, which include TV18's news channels, the "Colors" entertainment channels, and sports properties, will be combined with Disney+ Hotstar, one of India’s leading streaming services, well known for its sports and entertainment content.
Disney+ Hotstar, which once dominated the cricket streaming landscape with its Indian Premier League (IPL) and World Cup rights, recently lost the digital rights for the IPL 2023-27 cycle to Viacom18, a Reliance-backed entity. Despite this, the combined portfolio will still hold broadcasting rights for prominent sports events like Wimbledon, MotoGP, and the English Premier League.
Leadership and Future Plans
At the helm of this new media giant will be Nita Ambani, wife of Mukesh Ambani, serving as Chairperson. Uday Shankar, a former Disney executive, will take on the role of Vice Chairperson. To further fuel growth and expand its market share, Reliance is set to infuse Rs 11,500 crore into the joint venture.
What’s Next?
Although the CCI approval is a critical step, the merger still requires the final nod from the National Company Law Tribunal (NCLT). Once approved, the deal is expected to significantly alter the dynamics of India’s media and streaming industries, potentially giving Reliance-Disney a dominant position in both the broadcast and streaming markets.
With some inputs from the Times Of India
Agenda
Apple's Strategic Push into India's Digital Content Market
Jio, Disney+ Hotstar, Apple and Airtel - can it get bigger than this for Indian streaming?
Is There Still Space for the Underdogs?
And….Action!
Apple's Strategic Push into India's Digital Content Market
Overview: Apple's New Deal with Bharti Airtel
Apple's recent partnership with Bharti Airtel marks a significant move to expand its presence in India's digital content landscape. With India being a fast-growing market for digital services, the deal allows Apple to offer Apple Music and Apple TV+ to millions of Airtel's 281 million subscribers. This move aims to elevate Apple’s market share in India, which has been relatively modest compared to global competitors like Spotify and Disney+ Hotstar.
Boosting Apple Music and Apple TV+
The deal, which brings Apple Music and Apple TV+ to Airtel’s customer base, is expected to broaden Apple’s reach in India. In a market where Apple’s services have yet to gain significant traction, this partnership could dramatically increase its user base. Apple's content offering will be available through premium Airtel packages, potentially replacing Airtel's own Wynk music service. This highlights Airtel’s decision to focus on distribution rather than content creation, positioning Apple as a key player in its content strategy.
Apple Music Integration: Apple Music will be available to premium Airtel users, offering a blend of Bollywood and regional music, which is expected to appeal to Indian audiences. However, Apple’s music catalog remains smaller than rivals like Spotify, which has over 3 million paid users in India.
Apple TV+ Expansion: Although Apple TV+ has yet to become a major player in Indian video streaming, this partnership offers new opportunities. Airtel plans to bundle Apple TV+ with its data plans, which could help Apple TV+ reach more homes, despite its limited Hindi and regional-language content.
Music Streaming Competition
India’s music streaming market remains competitive, with Apple Music facing tough challenges from local and international players. According to industry data, only about 7.5 million users in India paid for audio streaming services last year, with Spotify and Gaana dominating the market.
Apple vs. Spotify: Spotify currently leads with 3 million paid users in India, followed by Gaana with 1.4 million and Apple Music with just 200,000. Apple’s partnership with Airtel could help narrow this gap by leveraging Airtel’s large subscriber base.
Localized Content Strategy: While Apple Music is tailored to Indian audiences with Bollywood and regional music, it still lacks the extensive library that Spotify offers. The service's growth in India will depend on how well it can expand its content offerings.
Video Streaming: The Challenge of Competing in India
Apple TV+ (less than 1 million subs) has yet to make a significant impact in India's booming video streaming industry, where Disney+ Hotstar leads with 38 million users. Netflix and JioCinema are also strong contenders, with Netflix aiming for 100 million users in India.
Original Content vs. Local Preferences: Apple TV+ is known for high-quality original content such as "The Morning Show" and "Slow Horses." However, the platform's limited Hindi and regional content poses a challenge in a market where Bollywood actors and regional films drive viewer preferences. Rivals like Disney+ Hotstar and JioCinema also have a strong advantage by offering cricket content, India’s most popular sport.
Airtel Bundling Strategy: Airtel's decision to bundle Apple TV+ with its premium plans could help Apple make inroads in the video streaming market. However, challenges remain, as Apple's offering is not yet fully optimized for local tastes.
A Critical Move for Apple in India
Apple’s partnership with Bharti Airtel is a strategic effort to grow its user base in India's digital content space, particularly in music and video streaming. While this move aligns with Apple’s broader global strategy to drive revenue through services, its success will depend on how effectively it can localize its offerings and compete with established players like Spotify, Disney+ Hotstar, and Netflix.
With inputs taken from Reuters
Jio, Disney+ Hotstar, Apple and Airtel - can it get bigger than this for Indian streaming?
In one week, India’s streaming industry has seen two monumental developments: the Reliance-Disney merger and Apple’s tie-up with Airtel. Together, these moves underscore a significant trend—streaming in India is increasingly becoming a "big boys’ game."
On one side, Jio and Disney+ Hotstar are pooling resources to create a media juggernaut, while on the other, Apple is joining forces with Airtel to carve out its own niche. These massive companies are making a beeline for the heart of the Indian consumer, signaling a new era where only the most well-capitalized players can compete at scale.
Is There Still Space for the Underdogs?
While the Indian streaming pie is being carved up by giants like Apple, Jio, Disney+ Hotstar, and Airtel, it’s crucial not to overlook the role of smaller players. The Streaming Lab remains committed to highlighting the importance of niche regional content creators, the burgeoning creator economy, social entertainment platforms, and even gaming, which have a growing influence on India’s media landscape. These smaller players may not have the financial muscle of the big names, but they are nimble, creative, and able to cater to the highly specific tastes of Indian audiences.
So, while this week’s headlines highlight the dominance of global and local giants, the underdog narrative is far from over. The Indian streaming industry, while consolidating at the top, still offers room for innovation at the grassroots level. The Streaming Lab will continue to champion these stories, keeping a close eye on the smaller, innovative companies that challenge the status quo.
'Kaun Banega Crorepati' (Adapted from Who Wants to be a Millionaire) is back with Season 16! The legend himself, Amitabh Bachchan, hosts contestants from across India on the hot-seat as they tackle increasingly challenging questions in a bid to win the INR 7 crore ($853,000+) jackpot.
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