Reliance Disney finalize $8.5 billion merger, forming India's largest entertainment giant
New Delhi: Reliance and Walt Disney agree to $8.5bn media merger Reliance Industries has struck a deal with the US entertainment giant Walt Disney that will create India's largest-ever entertainment opportunity by combining their respective portfolios under one roof, resulting in an USD 8.8bn in revenue for content owners.. The resulting merged company has equal parts of both rumour and worry surrounding its creation, however with 750 million viewers across their combined TV channels in over 120 countries, the newly formed group will have a dominant 40% share of the market; along with already being number one advertiser & streamer for sports.
This merger supports Reliance's expansion plans while giving Disney a better footing in the difficult Indian market. This new combined company creates an increasingly competitive landscape against Netflix, Amazon Prime Video, Sony and your 50+ other streaming services particularly when one considers the Hollywood talent that Fandango is now able to bring in from its past decades years as a specialized ticket distributor for movies.
Considering the combined size of the two businesses, more than 70 TV channels are available in eight languages on Disney's Star India. Viacom18 (N/A) from Reliance broadcasts 37 channels in a subset of eight languages. They both also own movie studios and two of the biggest streaming services, Jio Cinema and Hotstar. According to Elara Capital, the businesses are positioned to control 75–80% of the Indian sports streaming market across both TV and digital platforms due to their dominance in broadcasting important Indian sports events, such as the Indian Premier League (IPL)..
“The growing influence of this new media giant, particularly in cricket, puts Reliance and Disney in a prime business position,” says Karan Taurani, an analyst at Elara Capital. He describes the merged entity as a "large media juggernaut" with significant control over the sports-driven viewership market, which heavily influences advertising revenue.
The merger has sparked concerns over potential monopolistic dominance, with critics questioning whether it concentrates too much power in a single player. KK Sharma, former head of the Competition Commission of India (CCI)'s merger control division, remarked, “The emergence of a giant in the market… with the next competitor struggling with market share in a single digit, would make any competition agency sit up and take notice.”
India's competition watchdog, the CCI, approved the deal with a condition that makes it “subject to the compliance of voluntary modifications.” While these modifications haven't been made public, reports suggest that the companies have pledged not to excessively raise advertising rates for cricket streams. Sharma noted that the CCI retains the right to intervene if the merged company threatens market competition.
Reliance and Disney have a lot to gain from consolidating their market positions in an increasingly competitive Indian streaming market. Analysts, however, warn that smaller competitors might see a dip in earnings. “The Indian market values bundling and is price-sensitive,” says Taurani. The merged entity could offer a comprehensive package of web series, movies, sports, original content, and global catalogues, making it hard for competitors to match.
Taurani also points out that Reliance’s vast telecom subscriber base, particularly through Jio, adds another advantage. “Other streaming companies may find it difficult to raise prices if this combined entity can leverage Jio's subscriber base.”
Reliance’s pricing strategy has already proven successful. When it launched Jio in 2016, it disrupted the market with affordable mobile data, and now JioCinema offers subscriptions for as little as 29 rupees ($0.35) a month. Mukesh Ambani, Reliance's chairman, has promised “unparalleled content at affordable prices” from this new deal.
Vanita Kohli-Khandekar, a media industry expert, warns that while smaller streaming competitors might struggle, bigger challenges may come from global giants like Google, Meta, and Amazon, who have been aggressively expanding in India. She notes, “Some 80% of digital revenues go to Google and Meta, so you have to have scale, and finally, you have a company that can take on some of the large global majors operating in India.”
Kohli-Khandekar cautions that while the new entity has scale, it will also need to deliver high-quality content. She adds, “If the streaming market becomes more dependent on views rather than subscriptions, programming quality will be good only on one or two apps. That is something I would watch out for.”
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London, Nov 22: A bomb disposal squad deployed as a “precaution” to the South Terminal of Gatwick Airport concluded an investigation into a "security incident" on Friday after making a “suspect package” safe.
The South Terminal of Gatwick Airport, the UK's second busiest airport after Heathrow, which was briefly shut owing to the incident reopened following the incident.
The Gatwick is around 45 km south of London.
Two people detained during the enquiries have since been allowed to continue their journey as the airport was opened.
“Police have concluded their investigation into a report of a suspect package at Gatwick Airport. Officers from the EOD (Explosive Ordnance Disposal) team made the package safe, and the airport has been handed back to its operator,” Sussex Police said in an updated statement.
“Two people detained while enquiries were ongoing have subsequently been allowed to continue their journeys. There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel,” the statement added.
Earlier on Friday, the incident caused severe disruption at the busy airport’s South Terminal, while the North Terminal of Gatwick Airport remained unaffected.
“Police were called to the South Terminal at Gatwick Airport at 8.20 am on Friday (November 22) following the discovery of a suspected prohibited item in luggage,” a Sussex Police statement said.
“To ensure the safety of the public, staff and other airport users, a security cordon has been put in place whilst the matter is dealt with. As a precaution, an EOD (Explosive Ordnance Disposal) team is being deployed to the airport. This is causing significant disruption and some roads around the South Terminal have been closed. We’d advise the public to avoid the area where possible,” it said.
Footage on social media taken outside the airport showed crowds of frustrated travellers being moved away from the terminal building.
Gatwick said it was working hard to resolve the issue.
“A large part of the South Terminal has been evacuated as a precaution while we continue to investigate a security incident," the airport said in a social media post.
“Passengers will not be able to enter the South Terminal while this is ongoing. The safety and security of our passengers and staff remain our top priority. We are working hard to resolve the issue as quickly as possible.”
Train and bus services that serve the airport were also impacted while the police carried out their inquiries.
In an unrelated incident in south London on Friday morning, the US Embassy area in Nine Elms by the River Thames was the scene of a controlled explosion by Scotland Yard dealing with what they believe may have been a “hoax device”.
“We can confirm the 'loud bang' reported in the area a short time ago was a controlled explosion carried out by officers,” the Metropolitan Police said in a post on X.
“Initial indications are that the item was a hoax device. An investigation will now follow. Some cordons will remain in place for the time being but the majority of the police response will now be stood down,” it added.
