Niche OTT platforms eye M&As to avoid getting crushed by RIL-Disney combine
NEW DELHI : The coming together of Walt Disney and Reliance Industries is set to drive consolidation in India's streaming landscape as smaller, regional-language platforms explore merger and acquisition opportunities (M&A) to avoid getting crushed by a much larger entity that will potentially dominate the OTT ecosystem, experts said. The big challenge for M&As at the moment, however, remains arriving at a price point that parties can agree upon, given that even smaller players have hit a ceiling with paid subscriptions, but believe they have a valuable offering because of their targeted approach, a claim that may not always work for bigger entities that are themselves looking to expand their reach.
“The Disney-Reliance merger has definitely sparked some concerns. The prospect of a massive entity like this potentially monopolizing the market raises questions about our ability to compete for viewership, especially among regional audiences.
Additionally, navigating the challenges of escalating content costs, securing distribution partnerships, and negotiating competitive advertising rates become increasingly daunting in the shadow of such a formidable partnership," said Rajat Agrawal, director and content syndication head, Ultra Media & Entertainment Group that owns Marathi OTT platform Ultra Jhakaas. The company is constantly exploring strategies to fortify its position in the industry and is actively seek out collaborations that align with the goal of delivering value to customers, Agrawal said, declining to disclose specific plans.
In late February, Reliance Industries Ltd and Disney India merged their streaming and TV assets in an $8.5-billion deal to create an entertainment powerhouse. To be sure, streaming industry
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