How JIO’s Masterplan Beat Disney & became the King of Indian OTT? | Business Case Study
Summary
TLDRIn a landmark move, Disney Plus Hotstar and Mukesh Ambani's Reliance Industries have merged, creating a media giant that dominates India's OTT market. The joint venture, valued at $8.2 billion, gives Reliance control over 63.16% of the entity, with Disney holding 36.84%. This merger follows Reliance's strategic acquisitions of key content rights, including IPL and HBO, which weakened Disney's position. The case study highlights the importance of profitability, building a strong entry barrier, and the power of an ecosystem over individual products in business strategy.
Takeaways
- 📈 The Indian streaming market witnessed a monumental merger on 20th February 2024, with Disney Plus Hotstar entering a joint venture with Mukesh Ambani's Reliance Industries, creating a media giant valued at $8.2 billion.
- 👑 This merger made Reliance the dominant player in the Indian OTT (Over-The-Top) space, owning 35% of the market and commanding a viewership of 750 million viewers across 100+ channels and platforms.
- 🔄 Reliance's majority control (63.16%) of the merged entity, with Disney owning only 36.84%, signifies a major shift in the power dynamics of the Indian media landscape.
- 📊 In 2021, Disney was the leader in the Indian OTT space with 51 million viewers, but by 2024, it faced significant losses and challenges, including the expiration of its IPL streaming rights.
- 🏆 The strategic acquisition of IPL digital streaming rights by Reliance and the exclusive rights to stream HBO content in India dealt a significant blow to Disney's market position.
- 🤝 The merger is a strategic move by Reliance to leverage its diverse portfolio and cross-promote its brands, creating a more integrated and profitable media ecosystem.
- 📉 Disney's global struggles, including a drop in stock price and operational losses, influenced its decision to enter the joint venture with Reliance.
- 🚀 Reliance's aggressive expansion in the media and entertainment sector, starting from 2018 with the acquisition of Balaji Telefilms and leading up to the merger with Disney, demonstrates a calculated path to dominance.
- 🛠️ The business lessons from this merger highlight the importance of profitability, creating non-replicable barriers to entry, and building a powerful ecosystem over standalone products.
- 🌐 The merger is expected to reshape the Indian media landscape, with implications for other players in the industry and lessons for future business strategies.
Q & A
What significant event occurred in the Indian streaming market on February 20th, 2024?
-On February 20th, 2024, Disney Plus Hotstar entered into a joint venture with Mukesh Ambani's Reliance Industries, marking the biggest merger in the Indian streaming market of the decade. This strategic joint venture combined a media and entertainment company with an 82-billion-dollar valuation, significantly altering the media landscape in India.
How did the merger impact the ownership distribution between Reliance and Disney?
-Post-merger, Reliance controlled 63.16% of the merged entity, while Disney owned 36.84%. This was due to Mukesh Ambani's initial 73% stake in Wcom 18, which merged with Disney Star, and his additional $1.4 billion investment, which increased the joint venture's value to $8.5 billion.
What was the valuation of Disney's India business in 2021, and how did it change by 2024?
-In 2021, Disney internally valued its India business at around $5.4 billion. However, by February 2024, the valuation had dropped to $3.9 billion, marking a decrease of $1.5 billion.
What were the three superpowers that Disney acquired with the Star India Network?
-The three superpowers Disney acquired with Star India Network were extensive local content through Star's 77 TV channels spanning nine languages, broadcasting rights to major sports leagues like cricket and IPL, and a large audience reach with 700 million viewers.
How did Hotstar's business model differ from competitors like Netflix and Amazon Prime?
-Hotstar's business model included both Advertising Video on Demand (AVOD) and Subscription Video on Demand (SVOD), allowing them to cater to a broader audience with free content (AVOD) and simultaneously generate revenue from paying subscribers (SVOD). In contrast, Netflix and Amazon Prime primarily operated on the SVOD model.
What major losses did Disney Plus Hotstar incur between 2021 and 2023?
-In 2021, Disney Plus Hotstar's revenue was 1,670 crores, with losses at 600 crores. These losses were reduced to 343 crores in F22. However, between October 2022 and September 2023, Disney Plus Hotstar saw a total loss of 23.8 million subscribers.
What were the key strategic moves made by Mukesh Ambani that impacted Disney's dominance in India?
-Mukesh Ambani outbid Disney for the 5-year digital streaming rights of the IPL from 2023 to 2027, made IPL available for free, acquired exclusive rights to stream HBO content in India, and secured a multi-year deal with NBC Universal for films and TV shows, effectively dismantling Disney's competitive edge in the Indian market.
How did the loss of IPL and HBO rights affect Disney Plus Hotstar's position in the Indian market?
-The loss of IPL rights meant Disney lost a mass product that catered to a wide Indian audience, and the loss of HBO rights meant they lost access to premium content that attracted a high-end audience. These losses significantly weakened Disney Plus Hotstar's competitive position and subscriber base in India.
What business lessons can be learned from the rise of Jio and the fall of Disney in India?
-The business lessons include the importance of profitability, building a barrier to entry that cannot be replicated with money, and the power of an ecosystem over a standalone product. Reliance focused on profitability, created a strong ecosystem with cross-promotion and data advantages, and leveraged their resources to outcompete Disney.
How did Reliance plan to turn the merged entity profitable despite Disney's previous losses?
-Reliance planned to leverage its extensive portfolio of companies and brands to advertise and cross-promote their own services, control digital and TV rights of IPL to increase advertising prices, and offer bundled services with their telecom plans to attract more customers and increase revenue.
What was the role of Wcom 18 in the formation of the media giant under Reliance?
-Wcom 18 played a crucial role as it had a wide presence across TV broadcasting, cinema, live broadcasting, OTT, and distribution. With its roots in TV broadcasting and a vast array of channels, including popular ones like Nick and MTV, Wcom 18's $4 billion valuation was a key factor in forming the media giant under Reliance.
Outlines
🤝 The Mega Merger: Disney Plus Hotstar and Reliance
The script opens with the announcement of a monumental merger in India's streaming market on February 20, 2024. Disney Plus Hotstar has entered into a joint venture with Mukesh Ambani's Reliance Industries, marking the biggest merger of the decade. The strategic alliance has created an 82-billion-dollar media behemoth, with Reliance owning 35% of India's OTD market, including 120 TV channels and 30,000 content assets from Disney. This merger has positioned Reliance as the dominant player in the Indian media space, controlling a viewership of 750 million across 100 TV channels and three streaming platforms. The deal has shocked the industry, as Disney, once the leader in India's OTD space, now holds a minority stake of 36.84%, with Reliance controlling 63.16%. The video then transitions to discuss the implications of this merger and how Reliance dethroned Disney in the Indian media landscape.
📈 Understanding Mergers: The Process and Valuation
The video delves into the mechanics of mergers, using a hypothetical example of two media companies, Think Media and WTF Media, to explain the process. It outlines the steps of individual valuation, where companies assess their intellectual properties, brand value, future cash flows, and net present value of assets and liabilities. The video then discusses ownership distribution, demonstrating how the combined value of the entities determines the stake each party receives in the new venture. Using the example, it shows how additional investment can alter ownership stakes. The segment concludes by drawing parallels to the Reliance-Disney merger, highlighting how Mukesh Ambani's strategy mirrored the hypothetical scenario, allowing Reliance to gain significant control over the joint venture.
🏆 Disney's Journey and Reliance's Ascendancy in India
The narrative continues with a timeline of Disney's operations in India, from its inception in 2004 to its acquisition of UTV and subsequent ventures into film production and the launch of various channels. It discusses Disney's acquisition of 21st Century Fox, which gave them control over Star India Network and access to a vast audience. The video then contrasts Disney's success with its losses and the strategic moves by Reliance, which included outbidding Disney for IPL streaming rights and acquiring exclusive rights to HBO content in India. It details how Reliance systematically dismantled Disney's dominance in the Indian OTD market, leading to a significant loss of subscribers for Disney Plus Hotstar and forcing them into a position where a merger with Reliance seemed inevitable.
💡 Business Lessons from Disney's Decline and Reliance's Rise
The video concludes with key business lessons learned from the rise of Reliance and the fall of Disney in India. It emphasizes the importance of profitability, the need to build an unbreachable barrier to entry, and the power of an ecosystem over standalone products. It reflects on how Reliance's strategic investments and focus on profit allowed them to dominate, while Disney's losses and failure to establish a strong competitive edge led to their decline. The video also touches on how Reliance's diverse empire can leverage the merged entity to increase profits and market share, suggesting a transformative impact on the Indian media landscape.
Mindmap
Keywords
💡Mergers and Acquisitions
💡Market Share
💡Intellectual Property (IP)
💡Valuation
💡Ownership Distribution
💡Viewership
💡Content Assets
💡Strategic Business Moves
💡Ecosystem
💡Business Lessons
Highlights
On 20th February 2024, Disney Plus Hotstar and Mukesh Ambani's Reliance Industries entered into a strategic joint venture, marking the biggest merger in India's streaming market.
Post-merger, the new entity owns 35% of India's OTT market, 120 TV channels, and 30,000 content assets from Disney, commanding a viewership of 750 million viewers across 100 TV channels and three streaming platforms.
Reliance will practically control 63.16% of the merged entity, while Disney owns 36.84%, a significant shift from Disney's dominance in the Indian OTT space in 2021.
The merger exemplifies how Reliance dethroned Disney as the king of the Indian media space, raising questions about Disney's business strategy and the competitive landscape.
Disney's valuation for its India business dropped from $5.4 billion in 2021 to $3.9 billion in 2024, indicating a loss of $1.5 billion in just two years.
Disney's losses in India were significant, with the company incurring heavy losses despite its market leadership and extensive content library.
The loss of IPL digital streaming rights to Reliance in 2023 was a major blow to Disney, as it lost a key driver of customer acquisition and revenue.
Reliance's acquisition of exclusive rights to stream HBO content in India and a multi-year deal with NBC Universal further weakened Disney's content advantage.
Disney's global operations also faced challenges, with its stock price dropping to its lowest level in 9 years in 2023.
Reliance's ecosystem of over 250 companies across various sectors provides a unique advantage in leveraging the merged entity's potential for profit.
The merger allows Reliance to control both digital and TV rights of IPL, potentially increasing advertising revenue and market share.
Reliance's strategy of building a profitable venture in Jio before expanding into other industries serves as a lesson in sustainable growth and profitability.
Creating a barrier to entry is crucial for maintaining competitive advantage, as demonstrated by Disney's inability to prevent Reliance from outbidding them for key content rights.
An ecosystem approach to business is more powerful than focusing on a standalone product, as seen with Reliance's dominance in both telecom and media.
The Disney-Reliance merger is expected to significantly alter the Indian media landscape, with implications for consumers and the industry as a whole.
The case study of Disney and Jio's battle in India provides valuable business lessons on profitability, competitive barriers, and the power of a strong ecosystem.
Transcripts
hi everybody on 20th of February 2024
the streaming Market of India witnessed
the biggest merger of the decade this is
when Disney plus hot star entered into a
joint venture with Mukesh duai Amani
Disney announcing that it is emerging
its India TV and streaming business with
the country's top conglomerate Reliance
Industries strategic joint venture of of
a media and entertainment company an 82
billion do Behemoth in the media space
and the reason why this is a very very
big deal because with this merger mukes
Amani has practically become the king of
Indian otd space because now this entity
alone owns 35% of the entire otd Market
of India 120 television channels and
30,000 content assets of Disney in total
this entity alone will command a total
viewership of 750 million viewers over
100 television channels and media and
entertainment space with three streaming
platforms with an impressive
International catalog and also the
largest offering and portfolio of
sporting events in media Winner Takes it
all and this will become the Big Daddy
of Indian media 750 million viewers
across India uh is what this is going to
cater towards is what these companies
are saying and you know what Reliance
will practically control
63.16% of this merged entity and Disney
owns only 36.84% and this is is
absolutely shocking because in 2021
Disney was the king of the Indian otd
space if you don't believe me look at
this chart while Amazon Prime had 22.3
million views Netflix stood at 6.1
million views and Disney plus hot star
touched a viewership of 51 million views
and if you look at Gio Gio was nowhere
in 2021 but even then in Just 2 years
something crazy has happened and
suddenly Reliance has become the king of
the Indian media space so the question
is how did Reliance Dethrone Disney as
the king of the Indian media space what
was mukes Amani's genius business
strategy to beat a 100-year-old giant
like Disney in India how did Disney lose
this business war with Gio in spite of
having so much money and so much
resources and as students of business
what are the lessons that we need to
learn from this epic business
battle this video is brought to you by
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description and now on with the
episode to understand this merger of the
decade and why Disney lost we first need
to understand how a merger fundamentally
takes place so let's understand this
using an example let's say there are two
media companies think media and WTF
media and they wish to merge their
operations so the first step to this
process is to settle on something called
individual valuations this means both
entities need to First calculate their
own value for media companies this
valuation is done by counting a
company's intellectual properties like
shows plus brand Value Plus future cash
flows plus net present value of assets
and liabilities so let's say things
school has assets worth $12 million and
liabilities of $2 million so its Net
Present Value based on assets and
liabilities would be $ 12us $2 million
equal to $10 million similarly its IP
and brand value are estimated at $5
million and the present value of its
projected future cash flow is $15
million so think school's overall
valuation would be $10 million plus $5
million plus $15 million equal to $30
million similarly WTF media might have
assets worth $5 million and liabilities
of $1 million so its Net Present Value
would be $4 million if its IP and brand
value are worth $10 million and the
present value of the future cash flow is
estimated at $6 million then WTF media's
valuation would be $4 million plus $10
million plus $6 million equal to $20
million this is the first phase of a
merger which is valuation if this is
clear let's come to the Second Step
which is ownership distribution now
based on the values of think and wdf the
value of this entire Venture is $20
million plus $30 million which is $50
million So based on this valuation think
media gets 60% stake while WTF media
will get 40% of this new entity let's
call this new entity Indian business
podcast but now nikil Kat comes in and
says that he wants to invest another $10
million and then this fresh infusion of
cash will change the valuation of the
Indian business podcast so now the
Indian business podcast is valued at 20
million + 30 million plus 10 million
which is $60 million
so now think media which brings in $30
million in value will own 50% of the
entity whereas WTF brings in $20 million
which will own 33% of this entity and
nikl individually will own 177% in this
new entity but now if you see
practically nikil owns both WTF media
and his own stake so nikil has 50%
ownership of the Indian business podcast
this is how nikil can increase his stake
if the stakeholders agree to have is
Cash input if this is very very clear to
you let's come to the Reliance Disney
merger because this merger is very
similar to the merger that we just
discussed and mukes Amani acted very
similar to how nikil kamad acted in this
hypothetical joint venture you see
Mukesh Amani has a 73% stake in wcom 18
and wcom 18 merged with Disney star
which is Disney's India arm while wcom
had a holding value of $4 billion Disney
transferred most of its assets to Disney
star giving it a holding value of $3.1
billion and just like nikil pumped in
$10 million into the Indian business
podcast Mukesh Amani pumped in an
external investment of $1.4 billion and
this brought the total joint venture
value to $8.5 billion so essentially
Reliance will have a direct stake of
16.34% because of Amani's 1.4 billion
wcom 18 will have 46. 182% because of
its $4 billion valuation and Disney will
own 36.84%
of the joint venture and since Ambani
owns a significant chunk of wcom 18
Reliance will practically control 63.16%
of this merged entity now I don't know
if you noticed this equation but what is
very surprising in this equation is the
low valuation of Disney because if you
remember in 2021 2022 Disney had
internally valued its India business at
around $5.4 billion this included star
India Disney and Disney Plus hotstar and
today in February 2024 which is 2 years
after this valuation the same valuation
has dropped from 5.4 to 3.9 billion and
that is a difference of $1.5 billion so
the question is what happened in the
past 2 years and where did things start
going wrong for Disney to understand
this let's put it in a timeline and take
you through a quick history of Disney in
India you see back in 2004 Disney
independently started operations in
India and after the success of the
Disney Channel
they went on to acquire hungama TV which
was owned by UTV by 2012 Disney bought
out UTV to venture into the film making
business and in spite of a few hit
movies the company was still making
losses so with no success in films it
closed his production arm in 2016 then
in 2017 Disney made another acquisition
and paid 71.3 billion for a large
portion of 21st Century Fox the
Blockbuster Disney deal the pair company
of ABC buying many of the assets of 21st
Century Fox creating an entertainment
Giant in a move that would reshape the
entertainment industry large parts of
what belonged to 21st Century Fox would
become the property of Disney and with
this deal Disney took over Fox's
business in India where they got their
Golden Goose which is none other than
the star India Network now just to give
you better context this star group alone
owns 77 TV channels like Star Gold Star
Plus Star Sports and even hotstar so
star is literally a Crown Jewel of the
Indian media space with an audience of
700 million people and I don't know if
you've noticed this but then every
member in your family consumes at least
one star Channel while moms watch Star
Plus my grandma watches star VI which is
a Tamil Channel and we Millennials we
watch Star Sports along with our father
so for Disney with just this one move it
got access to a market of 700 million
people then in 2020 Disney merged its
newly created Disney plus with hotstar
to embrace the otd wave in India and
that too during the pandemic so do you
realize this is some unreal timing and
that to with the best players in the
market merging together with Disney who
was the Godfather of media in the entire
world so Disney was practically killing
it in India and became a market leader
by 2021 with a 30% market share in otd
look at this chart while Netflix total
offerings were original movies and shows
created by them Disney Plus hot Stars
Library consisted of star Disney and HBO
exclusive content and this also included
the rights to two of the most legendary
Series in the world which were from
Marvel Cinematic Universe and the iconic
Game of Thrones and both of them were
massive hits in India and across the
world and this got them the most premium
audience in India so with this
acquisition Disney acquired three
magical superpowers that nobody had in
India firstly star India gave Disney the
insane Act of local content now in a
country where nearly 24 languages are
spoken star's 77 TV channels spanned
across nine languages so star was one of
the most important instruments to
capture India as a whole secondly they
spent billions to broadcast some of
India's biggest sports leagues including
our national Obsession cricket and IPL
they went so bullish on Sports in 2017
that they backed a $2.6 billion deal to
stream the IPL for 5 years and we all
know how IPL became a crown jeel for hot
star for those who don't know IPL 2020
brought in 7.2 million views for hot
star on the first day itself this is how
IPL became a catalyst of customer
acquisition for hotstar IPL today is not
only the fastest growing but is also the
second most valuable sports league in
the world for the match between Chennai
Super Kings and Kolkata Night Riders
viewership for the game peaked at a
whopping 5.5 million concurrent viewers
this is the largest on AR my platform
for any live sporting event in the world
hotstar as a platform is a market leader
uh you know for sports content close to
80% of the revenue are Cricket driven on
top of that unlike other players in the
market hotstar had two models of Revenue
and this made them very very powerful
they had both advertising video on
demand as well as subscription video on
demand model for those who don't know
avod is a model where the platform
doesn't make money from the audience
subscription but they make money from
ads that run while the viewers watch the
content for free for example YouTube is
a avod platform where we watch content
for free and the Creator and the
platform make money with ads whereas
svod or subscription based video on
demand is a model where the platform
makes money from the subscribers and
without paying for it the subscribers do
not get access to any of the content so
while Amazon Prime and Netflix were
operating with svod models and limited
the number number of viewers they had
hotstar very smartly had both avod which
was free for everyone and svod for
paying customers this way they could get
the access to a large audience with avod
and they could make money with
subscribers simultaneously with svod and
even in svod hotstar was so
competitively priced that their annual
pack started at $14.99 per year which
was the same as Amazon Prime and in avod
also they had another plan which was
both free and premium which started with
just 4.99 rupees per year so if you
remember this was an avod plus svod
model where for a small fee you get
exclusive content but you will see it
with ads this is how hotstar got the
reach of avod and the revenue of the
svod model these are the three
superpowers that hotstar brought in with
Disney and cherry on the cake were the
bundles now if you remember we all got a
hot star subscription along with our
prepaid recharge packs right and when we
looked deeper we found out that while
Amazon Prime had Partnerships only with
Gio and Airtel Netflix had a bundle deal
only with Vodafone and that to with a
postp plan of over 1,99 rupees whereas
Disney Disney partnered with all three
Telecom Partners including Gio airel and
vone so this heavily increased their
viewership as Disney became more
accessible to the users and you know
what all this put together they
skyrocketed Disney plus hot Stars
viewership to such an extent that like I
showed you in the intro in November 2021
while Amazon Prime stood at 22.3 million
views Netflix stood at 6.1 million views
and Disney plus hot start test a
viewership of 51 million views so do you
see Disney was practically the king of
otd in India then the question over here
is what exactly was the problem and how
did a newb like Gio come and kill
Disney's dominance in India well as it
turns out ever since its launch in 2019
Disney plus had been in losses so even
though Disney p in millions of dollars
into acquiring subscribers and avod and
bundles they have been incurring very
heavy losses look at this chart while
Disney plus hot star's Revenue was 1,670
cror in 2021 its losses were 600 crores
and these losses were reduced to 343
crores in F22 so it almost looked like
Disney plus hotstar was just about to
become profitable right well this is
where there was a Twist in the tail
because this is when they are 5-year
license of IPL got expired and as we all
know this is where Mukesh Amani stepped
in in June 2022 wcom 18 outbid Disney's
$2.89 billion with a 5-year Digital
streaming rights of the IPL from 2023 to
2027 so even though Disney retained the
television rights of IPL it was still a
very heavy blow for Disney and this is
when out of nowhere Gio made a
revolutionary announcement and made IPL
free the IPL is one of the richest
Sports properties in the world making it
the only cricket league in the world to
crack the top 20 most valuable media
rights deals in all of professional
sports I has a viewership of almost 700
million people the Reliance owned Ott
platform has shattered world records for
the most current Ott views to RI own
geoc Cinema successfully streamed the
IPL 2023 for free so potential to grow
this viewership immense massive and IPL
is such a big crowd pillar guys that in
2023 alone IPL attct attracted 449
million viewers which is practically 1/3
of the entire Indian population now I
don't know if this is because of the IPL
or not but between October 2022 to
September 2023 Disney plus hot star saw
a total loss of 23.8 million subscribers
so when Disney lost IPL it lost its
first Golden Goose which was a mass
product for India this is when in April
2023 Mukesh Amani took away the second
jeel from Disney by buying the exclusive
rights to stream HBO content in India
now if you know HBO you would know that
the most premium audience in India
watches HBO and just like Game of
Thrones in 2019 in 2023 the most premium
audience in India was watching
succession House of dragons and Last of
Us and guess what Mukesh Amani did not
stop here he further went on to make a
multi-year deal with NBC Universal to
get another thousand hours of films and
TV shows now again I don't know how many
of you know this but NBC has the rights
to some of the most valuable and perhaps
the most popular shows in India and this
includes the office friends and Brooklyn
99 this is the third snatch that Amani
made so do you see this Mukesh Amani
essentially broke Disney's otd business
step by step and you know what Disney's
trouble did not stop here also Disney's
TV business in India was also suffering
losses in the first 9 months of fi23
itself star Sports reported an operating
loss of $444 million so Disney failed
with hot star star and even with its
Global operations in fact in 2023
Disney's stock price dropped to $82.4
something which is its lowest level in 9
years this is because they've been
incurring losses not just in India but
all across the world we've been talking
about a Disney stock closing now at its
lowest level in more than 3 years
yesterday we're talking about Disney
today here is the intraday price action
you can see we are just off the lows
here what caused this calamitous decline
here they got Myriad problems uh at
Disney you don't need to look for more
problems to figure out what's going on
at Disney now if this Disney story is
very very clear to you let's understand
how Mukesh Amani started laying the
foundation for this merger from 2018
itself well if you look at Gio they had
always been ambitious in the media space
while Geo Cinema geot TV and Geo music
were seen as just indianized version of
Netflix and Spotify in reality Reliance
was just laying the foundations to
dominate India and from 2016 onwards
this is what their trajectory looked
like in 2017 they bought stake in Balaji
tele films to provide Goot TV with
content and in 2018 they merged Geo
music with saon then in 2022 Reliance
made a big business move and merged geoc
Cinema with wcom 18 now to give you an
idea about how big wcom 18 is look at
this chart wcom 18 has its roots in TV
broadcasting and a v WID sped presence
across Cinema live broadcasting Ott and
even distribution it starts from a kids
channel like Nick and goes all the way
to sports to MTV to the entire I repeat
entire colors family in total they
operate across nine Indian languages and
have 38 channels including the otd
streaming platform wood so Reliance
merged with wcom 18 to form a media
Giant in 2022 this is the reason why in
total its current holding Val value of
all of its assets came to $4 billion and
this was bigger than Disney India's
valuation at the time of their merger so
when Disney was stripped of NBC HBO and
IPL Gio made them an offer that they
could not refuse so now the question is
when Disney streaming was in losses why
did Reliance take over such an industry
and how will Reliance make a profit when
Disney failed in India well again to
understand this we studied multiple
possibilities and if you look at this
chart there are more than 250 companies
under the Reliance Empire this includes
everything from retail to
telecommunication to entertainment to
textiles to even Consumer Finance and
along with that they have big Brands
like AIO bookm show netmeds and Hames
and this brings three superpowers at
Gio's disposal firstly instead of just
relying on thirdparty platforms like
YouTube Reliance will also have a large
pool of data and channels to advertise
their own Brands so when they own both
The Advertiser and and the channel their
own Revenue will just go from one
company to another company it's like
backward integration but in advertising
secondly with this Disney merger mukes
Amani practically controls both digital
and TV rights of IPL so if anyone wants
to advertise in the IPL they have to go
through motab only which means because
they are practically a monopoly they can
increase the prices of advertising as a
result they have a much bigger benefit
and lastly you tell me guys if you're
deciding between G and AEL if Gio starts
offering a data plan that includes free
access to IPL plus International shows
from HBO plus NBC plus hot star wouldn't
you switch from Airtel to Gio if you
just said yes you know what this is this
is Geo's opportunity to snatch nearly
$18 billion in revenue from airel and
then again they can increase their
prices so if mkes Amani uses his
superpowers to turn profitable with this
merger and take a lead with Gio against
etel it will be a revolutionary move
this is what we could find about the
legendary rise of Gio and the fall of
Disney in India and by the look of it it
seems like this merger will change the
Indian media landscape
forever and this brings us to the last
part of the episode and that are the
business lessons that we need to learn
from the incredible rise of the inanis
lesson number one no matter how much you
scale ultimately the most important
superpower will always be profit profit
and profit because with profit profits
you can buy any company but without
profits eventually a billion doll
Revenue will just be a ballooned
illusion of success in this case First
Reliance used their own resources to
build Gio they turned Gio into a
profitable Venture and then they
ventured into other Industries now do
you realize they have done this in spite
of having unlimited capital and they did
not scale with just losses so when mukes
Amani is rooting for profit I think all
of us should lesson number two unless
you build a barer to entry that cannot
be replicated with money any big player
with Deep Pockets can just dismantle
your company in this case while Disney
is strong with content like Marvel in
India somehow they could not build a
barrier to entry because of which Gio
simply had to just buy the rights off
and kill their competition and lastly
like I always said ecosystem is always
more powerful than a standalone product
and this is something that we all need
to strive and build in this case while
AEL and Disney are champions in their
own domain somehow Gio is becoming a
mammoth in both Telecom and media and
this is both fascinating and frightening
at the same time these are the business
lessons that we need to learn from this
iconic battle between Disney and Gio and
I just hope you learn something valuable
from this case study that's all from my
side for today guys if you learn
something valuable please make sure to
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baba happy and for more such insightful
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please subscribe to our Channel thank
you so much watching I will see you in
the next one
[Music]
bye-bye
[Music]
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