Confidence to maintain Disney+ Hotstar as main platform after Star-Viacom18 merger; here’s why

Reliance Industries Ltd (RIL) has chosen Disney+ Hotstar as the main streaming platform following the merger of Star India and Viacom18, with JioCinema set to be absorbed, according to a report in The Economic Times. The move aims to consolidate Reliance’s presence in the Indian streaming market.

While Reliance has not officially confirmed the development, sources revealed that JioCinema and Disney+ Hotstar officials were informed of the decision earlier this week.

Post-merger, Disney+ Hotstar will emerge as the sole streaming platform for the combined entity, with the platform set to dominate India’s growing online entertainment space. “Reliance leadership ended up choosing Disney+ Hotstar for its superior technological infrastructure,” said a source familiar with the decision.

In February, Reliance inked an $8.5 billion deal with Walt Disney to merge Star India and Viacom18. The merger has already received approvals from the Competition Commission of India, the National Company Law Tribunal and the Ministry of Information and Broadcasting.

Why Disney+ Hotstar came out on top

While both platforms have extensive content libraries and strong positions in live sports streaming, three main factors made Disney+ Hotstar the platform of choice:

1. Superior technological infrastructure: According to sources, Disney+ Hotstar was selected for its reliable and scalable technology, which surpassed that of JioCinema.
2. Largest user base: Reports show that Disney+ Hotstar had 333 million monthly active users in Q4 2023, surpassing JioCinema which had 225 million during the same period.
3. More paid subscribers: In June, Disney+ Hotstar had 35.5 million paid subscribers, while JioCinema had just over 16 million in September.

Reliance has been streaming the Indian Premier League (IPL) on JioCinema for the past two years. However, with the merger almost complete, IPL 2025 matches are expected to be streamed on Disney+ Hotstar. RIL reportedly explored multiple strategies, including running separate platforms for sports and entertainment, but ultimately opted for consolidation.

The report suggests that once the merger is finalized, Star India will manage the operations of the newly combined entity. Viacom18’s TV and streaming assets will be transferred to Star. Reliance will hold a 56% stake, Walt Disney will hold 37% and Bodhi Tree Systems, owned by Uday Shankar and James Murdoch, will hold 7%. Nita Ambani is expected to serve as president, with Uday Shankar as vice president.