Mukesh Ambani, India’s wealthiest individual, has rapidly transformed his streaming platform, JioCinema, into a formidable competitor to global heavyweight Disney. The platform gained over 400 million viewers during the Indian Premier League cricket tournament, and has secured the rights to shows and films from networks such as NBC, HBO, and Warner Bros. Ambani is offering most of the content for free, sparking a price war in India’s fast-growing streaming market. JioCinema is just one part of Ambani’s plan to position Reliance Industries as India’s leading digital group. Jio, Ambani’s telecom network, is already the country’s largest and has allowed Reliance Industries to gain market share in various sectors through aggressive discounting and freebies.
According to Uday Shankar, an investor and director at Viacom18, JioCinema’s parent company, their goal is to build a platform with audience volumes that rival television in scale. Shankar believes that other streaming platforms like Netflix and Amazon Prime are not their competition; rather, it is traditional television. The Indian Premier League (IPL) is particularly crucial for JioCinema, as it is India’s most valuable sports tournament. JioCinema managed to beat Disney Star, the country’s largest TV network, for the digital rights to stream the IPL. JioCinema has since poached several executives from Disney Star and has successfully attracted viewers by offering the IPL for free online.
JioCinema plans to supplement its free tier with subscription packages targeting more affluent consumers and English-speaking audiences who are willing to pay for access to global networks like HBO. They currently offer a “Best of Hollywood” package for a fraction of the cost of Netflix’s cheapest subscription. JioCinema’s rapid rise has surprised the industry and gained recognition from larger production companies.
While Jio’s strategy of providing free content has driven audience growth, it has also led to losses in advertiser revenue during the IPL season. Both Jio and Disney Star have incurred potentially heavy losses as advertisers, particularly tech start-ups, cut back on spending due to funding challenges. However, it should be noted that Disney Star’s TV subscriptions are not factored into the estimates of losses. Disney Star remains adamant that television still offers a communal and immersive experience for sports fans.
Disney Star’s streaming platform, Disney Plus Hotstar, has experienced a decline in subscribers since losing the rights to the IPL. To drive traffic, they announced that they would stream high-profile cricket tournaments for free. This price war between JioCinema and Disney Star comes at a challenging time as entertainment companies face pressure to control streaming losses. Reliance, JioCinema’s parent company, has also faced challenges, with rising debt levels as it expands into different sectors. However, analysts believe that streaming losses are manageable for Reliance, given its robust oil refining and petrochemicals revenues.
Despite the challenges, JioCinema has proven to be a breakout success for Reliance, positioning the company at the forefront of India’s streaming market. The future for JioCinema after the IPL remains uncertain, but Ambani’s vision is focused on creating a leading digital group in India.
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