RIL-Disney JV kicks off tomorrow: Everything we know so far

The media industry eagerly awaits the much-anticipated merger between Reliance Industries Ltd (RIL) and Walt Disney’s Star, which, according to sources, is expected to take effect on November 13. This $8.5 billion media conglomerate will see RIL holding a 56% stake, Disney at 37%, and Bodhi Tree Systems with 7%. Nita Ambani will serve as chairperson, with industry veteran Uday Shankar stepping in as vice chairperson, establishing the strategic direction for the new entity.

Major exits and leadership shake-up

While the chairperson and vice chairperson roles are established, significant shifts are underway within senior management. The merged entity is expected to have a combined workforce of around 8,000, though some employees have chosen not to join the merged venture. 

As previously reported by e4m, approximately 200 Disney employees will remain with the company, handling roles specific to India and other markets. Among them is Bikram Duggal, Head of Studios at Disney Star, who has opted out of the Disney-Reliance joint venture but will continue working with Disney.

The JV, as per sources, is likely led by Kevin Vaz and Kiran Mani as co-CEOs. Both currently serve as CEOs for Viacom18’s broadcast and digital clusters, respectively.

Vaz, CEO of Broadcast Entertainment at Viacom18 since 2023, oversees prominent brands such as Colors and MTV. With over a decade of experience in media and entertainment, he previously held key roles at The Walt Disney Company India, contributing significantly to its success across platforms. Additionally, he was appointed Chairman of the FICCI Media & Entertainment Committee in January 2024.

Kiran Mani, who joined Viacom18 in 2023, brings over three decades of experience in the tech and media sectors. Previously at Google, Mani was instrumental in driving digital business strategies. His expertise in digital ecosystems and customer-centric approaches is positioning Viacom18’s digital platforms competitively in the OTT and streaming space.

Sources also suggest that Piyush Goyal, Chief Operating Officer at IndiaCast Media, will take over as the distribution head for the JV. Another speculated leader is Anil Lale, General Counsel at Viacom18, who is expected to serve as General Counsel for the merged entity as well.

Ahead of the formal restructuring announcement, expected in the second week of this month, several key executives have already exited the joint venture. Among them are K Madhavan, Country Manager & President of Disney Star, and Sajith Sivanandan, Head of Disney+ Hotstar India. These high-profile departures signal significant changes as the new entity aligns its operations and leadership for future growth.

Following their departures, Disney Star’s Chief Regional Counsel, Mihir Rale, also stepped down, sources report. Rale, who joined Star India in 2009, rose to head of operations by 2019. Most recently, Gurjeev Kapoor, Head of Distribution at Disney Star, has also decided to move on, e4m has learned from highly placed sources.

How is the JV poised for market leadership?

The JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment (e.g. Colors, StarPlus, StarGOLD) and sports (e.g. Star Sports and Sports18) including access to highly anticipated events across television and digital platforms through JioCinema and Hotstar. The JV will have over 750 million viewers across India and abroad. 

On 28th February 2024, when RIL and The Walt Disney Company announced the signing of binding definitive agreements to form a joint venture that will combine the businesses of Viacom18 and Star India, they said, “The JV will seek to lead the digital transformation of the media and entertainment industry in India and offer consumers high-quality and comprehensive content offerings anytime and anywhere. The combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star India will allow the JV to offer more appealing domestic and global entertainment content and sports live streaming services, while delivering an innovative and convenient digital entertainment experience at affordable prices.”

The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.

The JV is also set to establish an unprecedented leadership position in India’s sports broadcasting market, leveraging high-profile properties from both companies. Between Disney’s rights to ICC events, IPL TV rights and Viacom18’s IPL streaming rights, the JV will bring nearly 75-80% of India's sports broadcasting under one roof, particularly in cricket—a dominant sport in the Indian market. 

This consolidation is stirring concerns about a potential monopoly, with fears that reduced competition could lead to increased ad rates and limited options for advertisers. The merger while promising operational efficiencies and a streamlined platform for advertisers also raises questions on the potential impact of market concentration on India’s media and sports sectors.

CCI backed fair competition measures

Some of the concerns have been eased by the Competition Commission of India’s (CCI) order, which includes several commitments made by Viacom18 and Star India Pvt Ltd. The companies have agreed not to bundle television and OTT ad slot sales for their cricketing rights—including IPL, ICC, and BCCI—for the remainder of their current rights tenure. 

The CCI detailed in its order that, under ‘Schedule 3 - Commitments in Sports Segment,’ RIL and Walt Disney have provided voluntary commitments to maintain a competitive marketplace. “The Parties will not bundle together the TV ad slot sales for all three cricketing rights available with the Parties, i.e., IPL, ICC, and BCCI, for the balance tenure of the existing rights,” the CCI noted. Additionally, the companies committed to fair, transparent, and non-discriminatory terms in supplying advertising space on their streaming platforms until the expiration of the current rights they hold.

The companies have further assured that they will keep ad rates reasonable on both TV and streaming platforms for ICC and IPL events. “The Parties undertake that the major cricketing events for which they currently hold rights, including but not limited to IPL and ICC tournaments, will be broadcasted on their linear TV channels and streaming platforms on an advertisement-based, subscription, or hybrid model,” the order stated. 

They also clarified that, in cases where a subscription or hybrid model is used, fees will align with industry standards, following TRAI regulations for TV and avoiding the highest rates in the industry for OTT streaming.

Additionally, the parties have agreed to broadcast sports of national importance, as listed in official notifications, on the free networks of Prasar Bharati.

In another directive, the CCI has required the sale of seven TV channels: Star India’s Hungama, Super Hungama, Star Jalsha Movies, Star Jalsha Movies HD, and Viacom18’s Colors Marathi, Colors Marathi HD, and Colors Super. These measures are designed to address potential monopolistic concerns and ensure a balanced competitive landscape in the media and sports markets.

Dual apps for diverse audiences?

According to some sources, the merged entity plans to operate two distinct apps—a premium service, likely Disney+ Hotstar, and a freemium model under JioCinema. This dual-platform strategy aims to segment content offerings, catering to high-end and mass-market viewers separately, and providing advertisers with more targeted audience segments.

“A single app with diverse content could overwhelm users, making navigation challenging and potentially increasing churn. Segmenting content allows for better user experience and precise audience targeting,” said a media planner.

On the sports front, sources suggest that premium events like IPL and FIFA will remain exclusive to Disney+ Hotstar, while JioCinema will cater to regional and mass-appeal sports such as Pro Kabaddi League (PKL). This tiered approach is designed to optimize audience engagement and advertising potential across distinct viewer segments.

Ad revenue and growth potential

According to GroupM’s This Year, Next Year report, India’s ad revenue is projected to reach Rs 155,386 crore in 2024, with Rs 14,423 crore in incremental growth. With this merger, the new entity is positioned to capture a substantial portion of ad revenues, especially with its stronghold in sports. Experts suggest that the conglomerate’s dominance in cricket will likely drive up ad revenue, particularly through high-impact TV and digital integrations.