Reliance, the top conglomerate in India, and The Walt Disney Company, a leading entertainment company globally, have announced a significant partnership in India.
This agreement will combine the streaming and media assets of Reliance and Disney, forming an $8.5 billion entertainment powerhouse in the most populous nation in the world.
Reliance HQ in Mumbai, India
Reliance will inject $1.4 billion (INR 11,500 crore) to support the growth strategy of the new joint venture. Disney, on the other hand, will gain access to Indian cricket rights, a realm that the US company has been investing in for years. The combined entity of Reliance-Disney will own 120 TV channels and two streaming platforms, along with TV and streaming cricket rights for major tournaments in a country where cricket is exceedingly popular.
As per analysts cited by Reuters, the merged entity will establish a dominant position in sports in India, providing Reliance with significant leverage in negotiating advertising contracts. Analyst Jinesh Joshi mentioned that Disney’s collaboration with such a company will offer the US giant a financial safety net.
Disney+Hotstar
The companies have estimated the value of the joint venture at $8.5 billion, without disclosing the specifics of the calculation. Nita Ambani, the wife of Reliance owner Mukesh Ambani and the richest man in Asia, will lead the entity, with Uday Shankar, former Chairman of Walt Disney India, serving as vice chair.
Reliance and Disney aim to reach more than 750 million viewers in India and among the Indian diaspora worldwide. Disney CEO Bob Iger highlighted that “Reliance truly comprehends the Indian market and consumers,” and this partnership will enable the US company to offer a diverse range of digital services and entertainment and sports content.
