Reliance Industries Competes to Acquire Disney's India Business

In a dynamic and ever-evolving media landscape, Reliance Industries Ltd (RIL) has emerged as a prominent contender in the race to acquire Walt Disney Co's streaming and television business in India.

This strategic move marks an attempt to expand Reliance's footprint in the media and entertainment sector, following its successful ventures in the industry.

Disney's Search for Expansion:

Walt Disney Co, a media giant with a global presence, has been exploring options to bolster its operations in India. These options include the possibility of an outright sale or entering into a joint venture to foster growth and share costs in the Indian market. Disney recognizes the immense potential in India's vibrant media landscape.

The Role of RFID Tags:

Disney's earlier foray into the Indian market relied on ceiling-mounted cameras and shelf sensors to monitor consumer behavior and preferences. However, this technology faced challenges in distinguishing between similar items in terms of weight and appearance.

Enter RFID (radio frequency identification) tags—a well-established technology primarily used for inventory management and loss prevention. These tags, affixed to individual items, provide a more accurate means of tracking inventory and enhancing the shopping experience.

Reliance's Strategic Approach:

Reliance Industries, already entrenched in the media and entertainment sector through Viacom18, has shown interest in Disney's business operations in India. The conglomerate's diversified interests extend to various segments, making it a significant player in India's media landscape.

Potential Business Ventures:

Disney has explored various options with potential suitors, including the acquisition of Disney Star assets in India, which encompass sports rights and the regional streaming service Disney+ Hotstar. In addition, there have been discussions about Reliance acquiring a stake in Disney's Indian business.

The Impact of Streaming Competitors:

Disney has faced mounting pressure due to the emergence of Reliance Industries' streaming platform, JioCinema. Reliance effectively marketed its streaming platform by offering free access to the Indian Premier League cricket tournament—a digital rights domain previously held by Disney. Research firm CLSA reported a significant decline in Disney+ Hotstar's subscriber base following the loss of IPL digital rights.

Reliance's Strength in Content: Reliance's media venture, Viacom18, further strengthened its position in the industry by securing key content deals, such as the agreement with Warner Bros for popular shows like "Succession." These shows had earlier been part of Disney's platform.

Expanding Viacom18's Portfolio:

Viacom18, backed by Reliance, has made significant strides in the sports arena, acquiring rights to various sporting events. This includes digital streaming rights for IPL, Women Premier League, international cricket matches in South Africa, and SA20 (South Africa's T20 league), among others.

Reliance's History in Media and Entertainment:

Reliance's history in the media and entertainment sector dates back to its acquisition of Network18 in 2014. In 2020, the conglomerate consolidated its media and distribution properties under the Network18 umbrella.

Challenges in the Media Industry:

Both Disney and Reliance have encountered economic headwinds in the media and entertainment sector. Soft advertising environments and macroeconomic challenges have impacted their revenue and profitability. Nevertheless, both companies remain committed to adapting and thriving in this evolving landscape.

Conclusion,

Reliance Industries' pursuit of Disney's Indian business reflects the competitive dynamics in the media and entertainment sector. This strategic move has the potential to reshape the industry and create new opportunities for businesses and consumers alike.