Disney is partnering with the richest man in Asia to establish a new media conglomerate in India, with the goal of reaching over 750 million Indians.

Reliance Industries, owned by billionaire Mukesh Ambani, and Disney have merged their digital streaming services and 100 TV channels into a joint venture valued around $8.5 billion, the firms announced on Wednesday.

Since Disney has struggled to capitalize on the possibility given by a country of more than 1 billion people where English is widely spoken, rumors about a possible deal have been circulating for some time. The business is dealing with a lot of issues at home as well.

When Disney bought the majority of 21st Century Fox in 2019, including its sizable Star India network, the company launched a significant entry into the nation.

Disney (DIS) would own the remaining shares of the new company, with Reliance owning slightly more than 63% through its Viacom18 subsidiary.

A new era in the Indian entertainment sector is being heralded by this historic arrangement, according to Mukesh Ambani, whose vast corporate empire, spanning retail, technology, and renewable energy, is valued at over $236 billion.

The joint venture, which combines Disney’s “acclaimed films and shows” with Viacom18’s “renowned productions and sports offerings,” will be chaired by Ambani’s wife, Nita M. Ambani. The firms also stated that the initiative will serve the global Indian diaspora.

“India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company,” said Disney CEO Bob Iger.

Disney’s Efforts to Preserve the Indian Dream

In India, a country with a thriving media and entertainment industry, Disney has encountered numerous difficulties.

After Ambani’s company acquired the internet rights to stream the immensely popular Indian Premier League cricket matches, The House of Mouse suffered a particularly severe blow in 2022.

Since then, Disney’s streaming platform in India, Hotstar, has lost millions of users. In March of last year, it also had a setback when it ceased to stream HBO material.

After a few weeks, Warner Bros. Discovery (WBD) transferred its programming to Ambani’s JioCinema, bringing with it fans of popular shows like “Succession” and “Game of Thrones” in India.

According to its annual report, Disney made an average of just 66 cents per Hotstar customer in its most recent financial year, which ended in September. This is a decrease from 88 cents in 2022 and a far cry from $5.93 for a non-US user to Disney+, the company’s flagship streaming service.

The number of Hotstar subscribers fell by 39% to 37.6 million in the most recent fiscal year.

During a November earnings call, Iger stated that while Disney’s TV division was performing well in India, other areas of the company’s operations were having difficulties. At the moment, he stated, “We have an opportunity to strengthen our hand.” “Our preference is to remain in the Indian market.”