Businessman Mukesh Ambani has taken a big risk. Reliance Jio is buying Walt Disney, and the deal is expected to be completed in January or February.
This is a special agreement where Reliance will own 51%, and Disney Hotstar’s India media operation will be owned by them with 49%.
The company was facing losses, and Jio Cinema was competing directly with Disney Plus Hotstar.
Jio Cinema had taken away IPL rights from Disney Hotstar, and in return, Disney bought the rights of Asia Cup and Cricket World Cup from Jio Cinema.
Now, Mukesh Ambani’s company is buying Hotstar. The company suffered significant losses after IPL and FIFA World Cup, leading to a drop in Hotstar subscribers.
What happens to existing users? After the deal, Disney Plus Hotstar will merge with Jio Cinema.
Both app contents will be accessible in a single app. Existing Disney Hotstar customers will move to Jio Cinema, and new subscriptions can be obtained through Jio Cinema.
Users can save money with a single recharge plan. The merger will create strong competition with Jio Entertainment, Sony, Netflix, and Amazon Prime.
Mukesh Ambani is making a smart move. The rivalry between Netflix and Amazon Prime will likely increase because Jio Cinema may offer affordable plans.
Additionally, Jio might provide inexpensive add-on plans with recharge, targeting both telecom and OTT users—hitting two targets with one strategy.
