Reliance Disney merger: A game-changer for ad agencies, not without risks

The merger of Reliance Industries' JioCinema with Disney+ Hotstar, dubbed ‘JioStar’, redefines the advertising landscape in the OTT sector, presenting both opportunities and challenges for agencies. With consolidated audiences, it improves operational efficiency but reduces ad inventory, which could force JioStar to recalibrate its pricing strategy.

At the same time, the scarcity of ad slots, combined with enriched data-driven targeting capabilities, allows the new entity to position itself as a premium platform. By offering smarter insights and more precise targeting, it can justify higher rates to advertisers.

For agencies, this means adapting to higher cost per thousand impressions (CPMs) while leveraging advanced analytics for more unified, cross-content campaigns. The enriched data ecosystem offers streamlined targeting, but with fewer players, advertisers face reduced bargaining power. 

The merger’s scale also opens doors for creative experimentation, with Disney’s portfolio enabling crossover storytelling and branded content opportunities. Smaller platforms would be compelled to hustle into prioritising creating exceptional content to tackle this behemoth.

In a crowded OTT market, the merger could also signal a consolidation and trigger a shakeout, where platforms with strong subscriber bases and superior content will prevail. Campaign speaks to industry stakeholders about how JioStar’s success hinges on its ability to balance premium advertising experiences with viewer satisfaction and sustained growth.

Ajay Verma, managing partner, 0101.Today: The Reliance-Disney Hostary merger, potentially forming ‘JioStar’, is set to transform advertising with massive scale and unparalleled data integration. With over 120 TV channels, 400+ million paid subscribers, and exclusive rights to marquee cricket events, it promises a new era of hyper-personalised, data-driven marketing. The merger’s key strength lies in integrating viewer insights across digital and broadcast platforms, offering advertisers unprecedented precision in targeting audiences. 

However, the consolidation raises concerns. As JioStar dominates the ad space, advertisers face limited negotiation leverage and higher costs, potentially creating a duopoly. Yet, such concentration could spark innovation, with global players like Meta or Amazon entering the fray or new media platforms emerging to challenge the status quo.

While JioStar offers unmatched reach, advertisers must navigate pricing pressures in a less competitive market. Success hinges on balancing innovation with maintaining individuality across platforms like Voot, JioCinema, and Hotstar.

Mandeep Malhotra, founder and CEO, Srishti Media: The merger has the potential to redefine the adtech and OTT industries. On the adtech front, JioStar will leverage Jio’s vast consumer data and Disney’s content portfolio to deliver highly personalised, cross-platform advertising, creating cost efficiencies for large-scale campaigns. However, this consolidation of power could marginalise smaller advertisers and adtech firms, inflate ad prices, and raise privacy concerns as telecom and viewing data merge.

In the OTT space, JioStar’s integration of content and distribution will make it a dominant force, pushing smaller platforms toward mergers or reinvention. With economies of scale, bundled services, and control over premium content like sports, the new entity will likely reshape the industry into one dominated by a few key players, squeezing out niche competitors and driving further consolidation. This merger will set the stage for a new era of competition, but also raise significant challenges for smaller players and industry innovation.

Rajnish Rawat, co-founder and CEO, Social Pill: The merger creates a double-edged sword for advertisers, blending immense opportunities with significant challenges. On one side, it offers unparalleled reach and premium content—ranging from IPL cricket to Disney and Bollywood classics—making it a dream platform for brands with deep pockets. This merger isn’t just about bigger numbers; it’s about creating India’s first true media titan, giving advertisers access to India’s most premium audiences under one roof. 

However, this consolidation shifts market dynamics, favouring large brands while potentially pricing out smaller advertisers. With fewer players, Reliance-Disney could start dictating ad rates, creating a high-stakes advertising environment. Smaller platforms and creators face survival challenges as this media powerhouse becomes a gatekeeper of prime ad inventory.

Yet, consolidation may drive innovation, pushing smaller OTTs and creators to explore niche markets, regional content, or unique business models. These shifts could redefine India’s OTT and advertising ecosystem.

Rahul Mandal, marketing director, BrandingArea PR: The Reliance-Disney partnership will completely change how advertising works in India. By combining JioCinema and Disney-Star's content in one place, advertisers can now easily reach all types of viewers—whether they watch TV shows, sports, or streaming content.

With Disney bringing its popular shows, sports like IPL and Premier League, and international content to the mix, brands can now talk to both Indian and global audiences through one platform. This means companies can create better ads that work for everyone—from people who love local shows to those who prefer international content. It's like having the best of both worlds for advertisers, making it simpler to reach the right people with the right message.

Vistasp Hodiwala, co-founder and chief creative officer of Underdog: This merger will give creative people a lot of opportunities to experiment with stuff that has not even been touched before. Disney has a magnificent portfolio of iconic franchises which can be incorporated into local content. I am thinking crossover storytelling with characters of course. You can have branded series to interactive campaigns with unique content creation too. Though honestly, whether this makes for actually pushing the boundaries or just lazy story-telling, that is difficult to predict at the moment. Jio of course has a huge subscriber base which the new entity will benefit from.

Another industry person, speaking on conditions of anonymity, said that this merger could well see some consolidation in the crowded OTT market. It is already oversaturated, so we could expect a shakeout, with the platforms offering the best original content prevail, as well as those with the biggest muscle of subscriber base and the ability to adapt to that content staying head and shoulders above their peers. “This could also be a double whammy as we have seen from the cable revolution of two to three decades ago which slowly degenerated into a race to cater to the lowest common denominator.

Vivek Kumar Anand, chief business officer, DViO: The merger reshapes the OTT advertising landscape, bringing both opportunities and challenges for agencies. Too much bargaining power for a single entity is inevitable, but it may also be necessary to sustain the business. With consolidated audiences, the new entity reduces overlapping ad exposures, forcing recalibration of pricing strategies and resulting in higher CPMs. However, the scarcity of ad slots, combined with enriched data-driven targeting capabilities, allows JioStar to position itself as a premium platform, offering advertisers smarter insights and more precise targeting to justify the higher rates.

Advertisers gain benefits like reduced media wastage and streamlined cross-content campaigns, but fewer platforms increase dependency on JioStar, reducing bargaining power. While JioStar can set a new adtech benchmark, its success hinges on maintaining advertiser trust and delivering value without alienating viewers. Ultimately, consolidation drives profitability and efficiency, but agencies must navigate the evolving dynamics wisely.