Content creators worry over limited options with likely JioCinema-Hotstar merger

With Hotstar already said to have slowed down the commissioning of new original programming, content creators will have fewer options to pitch and ideate with. Plus, their bargaining power will be limited when one huge entity dominates the market and possibly decides to focus on certain themes to cater to its mass-market audience.

“Content creators will be at a disadvantage given that we’re heading to a monopoly of sorts in the OTT market. Options to pitch to are going to be fewer as far as platforms commissioning shows and movies go," said a senior producer working on a slate of shows across OTTs. “Hotstar has anyway been going slow on new content and there is a lot of uncertainty around whether already commissioned programming will be retained."

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The person added that the producer community is concerned that the merged platform may operate like YouTube, where instead of commissioning budgets for original programmes, they may only be provided a platform to host their content in a partnership based on a revenue-sharing model.

The Competition Commission of India approved the proposed merger between Disney Star, the local unit of The Walt Disney Company, and Reliance Industries-controlled Viacom18 on 28 August, paving the way for an $8.5 billion entertainment network. With the merger, the two entities would get combined market share that may exceed 40%, with complete dominance and reduced competition in some areas.

Fewer new projects?

A second producer agreed the merger would impact the commissioning of new projects.

“How much can one platform produce? The other disadvantage to a monopoly is that content often loses its edge when there is only one big player operating at scale and only a couple of foreign entities (in this case, Netflix and Prime Video) as competition," the person said on condition of anonymity.

In an interview with Film Companion earlier this year, actor Imran Khan said he was working with filmmaker Abbas Tyrewala on a spy series that was in early stages of development at Disney+ Hotstar.

"Disney has now amalgamated with Jio, and that project fell by the wayside," Khan had said.

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The merged entity will have about 100 TV channels, with 70 under Disney and the rest under Viacom18. Reliance, which already has content from Warner Bros. Discovery, including acclaimed HBO Originals, will get access to Disney’s extensive English-language libraries, including its Marvel and Lucasfilm catalogues.

However, some media experts said the emergence of one OTT platform could be beneficial.

“The advantage of the merger would be that both collectively will have higher control over competition. They will control around 31% of the streaming user base in India, which would leave other platform owners behind by a larger volume," said Deleise Ross, senior vice-president and business head at media agency Mudramax. “Due to this merger, they will offer a variety of content across different languages, genres, and formats, thus diversifying to attract a broader audience and meet the needs of the niche audience base."

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The merged entity would have a monopoly in the sports genre, with strong emphasis on cricket, Ross added, but there will be challenges for advertisers and media agencies since this may lead to changes in rates and strategies.

“It will be interesting to see how Reliance and Star plan a seamless merger of their content, ethos and audiences, while retaining their distinct identity," said Namrata Soni, director of media planning and buying at media agency Dentsu Creative India. “Jio has carved a special niche among premium audiences by gaining rights to all HBO content. At the same time, it is home to the largest gallery of free VoD (video-on-demand) and live OTT content covering multiple languages."

On the other hand, Hotstar has always maintained a healthy balance of paid and free VoD, live and original content, Soni said.

“It is home to popular GEC (general entertainment channel) shows like Anupamaa and Hotstar originals like Aarya, Special Ops and so on," Soni added.