The newly merged streaming platform, JioHotstar, a joint venture between Walt Disney and Mukesh Ambani’s Reliance, has experienced phenomenal growth, adding a staggering 230 million subscribers in just three months. This brings its total subscriber count to a remarkable 280 million, placing it neck and neck with Netflix’s global user base of around 300 million. The driving force behind this explosive growth? The Indian Premier League (IPL), the world’s richest cricket league, for which JioHotstar holds exclusive digital and television rights.
Prior to the merger, Reliance offered IPL matches for free streaming. Now, however, cricket enthusiasts must subscribe to JioHotstar, with affordable monthly packages starting at just $0.60. This strategic shift, combined with the immense popularity of cricket in India, has resulted in a massive influx of new subscribers. According to Sanjog Gupta, CEO of Sports at JioStar, a phenomenal 450 million people have tuned in to watch IPL matches across both television and digital platforms since the season began in March.
This incredible success makes JioHotstar the undisputed leader in the Indian streaming market and establishes it as a major player on the global stage. However, the challenge now lies in effectively monetizing this vast subscriber base. While the IPL’s popularity provides unparalleled reach within India, converting this reach into sustainable long-term profits presents a significant hurdle. A 2023 report by Jefferies highlighted the fact that IPL’s advertising revenue hasn’t fully covered broadcasting costs, emphasizing the need for a balanced approach to revenue generation beyond just subscriptions.
Looking ahead to the 2027 media rights renewal for the IPL, analysts anticipate that the Disney-Reliance partnership will be a dominant force in the bidding process. This could potentially lead to a more sustainable pricing structure for media rights, improving the overall financial viability of the platform. In the meantime, Disney’s stock experienced a slight dip of 0.20% in after-hours trading, closing at $109.50, following a 1.20% decrease during the regular Friday session. Despite this minor fluctuation, Benzinga Edge Stock Rankings indicate a strong growth score of 92.49% for Disney, reflecting the company’s overall positive market momentum.
