Disney is teaming up with Mukesh Ambani’s Reliance Industries to address challenges in its Indian streaming business.
The company announced a merger between its Star India service and Viacom18, backed by Reliance, in a deal worth $8.5 billion. Reliance will spearhead the new venture with a $1.4 billion investment to fuel growth.
Mukesh Ambani hailed the agreement as a “landmark” that signals a new era in Indian entertainment. The deal, subject to regulatory approval, is expected to finalize by year-end or early next year. The combined entity will wield over 120 channels, serving approximately 750 million customers nationwide.
Viacom18, a partnership between Reliance and Paramount, currently operates about 40 channels, including MTV, Nickelodeon, Colors, and the JioCinema streaming service, challenging Disney’s Star business acquired from Fox in 2019.
The joint venture, with Disney owning a 37% stake, will have exclusive rights to distribute Disney’s content in India. Viacom18 will hold about 47%, and Reliance 16%. Nita Ambani, wife of Mukesh Ambani, will chair the new company.
India’s streaming market is fiercely contested by players like Netflix and Amazon, making this merger a strategic move to navigate the rapidly growing landscape.