How a Reliance-Disney Star deal could impact cricket viewing in India

Money-spinning Indian cricket viewing and advertising are at stake as billionaire Mukesh Ambani’s RIL is reportedly stitching together a deal to acquire Disney’s India business in what could be the largest such deal in the Indian entertainment landscape.  

Between Reliance’s broadcast business Viacom18 and Disney Star, the two hold rights totalling nearly Rs 55,000 crore to three major cricket properties in India for the next 4-5 years — the Indian Premier League, International Cricket Council rights for men’s and women’s global events, and India bilateral matches across formats – across TV and digital platforms. 

A potential deal could either involve Reliance taking over Disney Star’s entire India business or just the digital streaming business. Disney’s India business includes streaming platform Disney+ Hotstar, a significant linear TV business in the form of 70-plus TV channels in eight languages, as well as a film studio. Reliance’s broadcast division Viacom18 owns 38 TV channels in eight languages, video OTT app JioCinema and Viacom18 Studios. 

If Reliance picks up only the streaming business, they will add World Cup digital rights to their kitty. But if they get both linear TV and digital businesses, all cricketing properties except a few international tournaments and World Cup TV rights (which Zee-Sony will likely get if their merger goes through) will come into the RIL-Disney Star fold, says brokerage firm Elara Capital’s senior analyst and Vice President Karan Taurani. 

“If the latter happens, it will create a monopoly – they will corner close to 80-90% of the overall potential cricket ad revenues. They will be able to charge premium rates from advertisers and also put cricket content behind a paywall,” he says. He estimates that cricket alone generates Rs 9,000-Rs 10,000 crore in ad revenues across TV and digital platforms – which is a tenth of India’s Rs 1 lakh crore advertising market.  

The deal has been necessitated as Disney is reportedly trying to hive off its Indian business amid a global cost restructuring operation. It initially seemed like the India business could either be sold or turned into a joint venture. However, no deal has been confirmed yet. 

Viacom18 holds the IPL digital streaming rights as well as TV and digital rights to India’s bilateral matches across T20I, ODI and Test formats of men’s and women’s cricket. Viacom18 streamed the 2023 edition of cricket IPL for free for all JioCinema app users across telecom networks to get more viewers to its platform.  

Disney Star holds the IPL TV rights and ICC digital rights, while it has planned to sub-licence ICC TV rights to Zee Entertainment Enterprises Limited (ZEEL). But that one-of-a-kind deal, first announced in August 2022, is yet to see the light of day even as Zee and Sony Pictures Networks India (SPNI) are in the midst of a proposed merger. Disney Star also streamed the recently concluded cricket world cup for free on its streaming app Disney+ Hotstar to rival Jio Cinema. 

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