Star-Viacom18 merger: Will Hotstar and JioCinema merge in a single app?

New Delhi: Reliance Industries is reportedly planning to merge Disney+ Hotstar with JioCinema into a single app following the Star-Viacom18 merger. 

Despite Disney+ Hotstar leading in downloads, RIL is considering merging it with JioCinema. 

Disney+ Hotstar, owned by Star India under Walt Disney, has over 500 million downloads, while RIL’s JioCinema, part of Viacom18, has over 100 million downloads.

This strategic move aims to consolidate content under a single platform, potentially reducing costs and enhancing competition against other streaming services like YouTube, Netflix, and Amazon Prime Video. 

According to RIL’s annual report, JioCinema attracted an average of 225 million users per month. Meanwhile, data from another report indicates that Disney+ Hotstar had 333 million monthly active users in Q4 2023. 

By June, Disney+ Hotstar's paid subscriber base had fallen to 35.5 million, a sharp decline from its peak of 61 million when it offered content like the Indian Premier League (IPL) and HBO.

RIL-controlled Viacom18 previously unified its OTT platforms—Voot, Voot Select, and Voot Kids—under the JioCinema brand. This move came after JioCinema was transferred to Viacom18 through an NCLT-approved arrangement. As part of this restructuring, RIL and Bodhi Tree Systems infused Rs 15,145 crore into Viacom18.

Many users have expressed preferences for the Hotstar interface over JioCinema, citing better user experience and technical performance. 

There are also discussions about the potential renaming of the merged service, with suggestions like focusing on sports content under a new name such as 'Jio Sports'. 

The merger is anticipated to streamline operations and improve the overall streaming experience, even as some remained skeptical about the quality and functionality of the merged app.

On February 28, 2024, The Walt Disney Company sold its India business to Mukesh Ambani’s Reliance Industries at a $3.5 billion valuation, which it bought from Rupert Murdoch for $14 billion seven years ago.

As per last week’s news reports, Reliance and Disney plan to sell some channels to expedite antitrust approval for their $8.5 billion merger in India.