Revisiting Media Landscape: Mergers, Transformations And OTT Prowess

In 2023, generative AI emerged as a catalyst in shaping content creation across the media landscape. Its impact, ranging from crafting personalised recommendations to automating content generation, played an integral role in enriching user experiences and optimising content workflows. The profound influence of AI-driven tools on content creation is noticeable throughout the media industry this year, marking a transformative shift in how media companies approach and deliver their content.

Mega Mergers

As 2023 draws to a close, Zee Entertainment (ZEEL) and Sony Pictures Networks India merger continues to face legal hurdles, with the NCLAT refusing to halt the process despite objections. This key moment in creating a USD 10-billion media powerhouse, highlights challenges in mega-mergers. ZEEL's move of seeking a timeline extension from Sony, guided by SEBI regulations and the Merger Cooperation Agreement, aims to navigate legal complexities, adding layers to the establishment of the media conglomerate. 

Simultaneously, a potential merger between Reliance Industries Limited (RIL) and The Walt Disney Company, evidenced by a non-binding term sheet, adds a new dimension to major media consolidations. The signing ceremony sets the stage for a deal anticipated to be finalised by January's end. The proposed 51:49 stock-and-cash merger, favouring RIL, follows reports from October signalling Disney's intent to sell its India business. 

The impending resolution of the Zee-Sony merger and discussions between RIL and The Walt Disney Company in the coming weeks introduces a new dimension to the landscape of major media consolidations. These developments consolidating 67 per cent market share, have the transformative potential to reshape India's television industry.

As 2023 drew to a close, Warner Bros Discovery and Paramount Global initiated initial discussions about a potential merger. This prospective deal would unite the entity behind HBO and CNN with the studio responsible for the Mission Impossible film series and CBS News. If materialised, the merged companies would command a combined market value of $38 billion.

Big Action

Gautam Adani solidified his position as the majority stakeholder in NDTV by acquiring an additional 27.26 per cent stake for ₹602 crore through Adani Enterprises' subsidiary RRPR Holdings. This transaction, involving 1.76 crore shares from NDTV brings Adani's total stake to 64.71 per cent, establishing him as the majority shareholder.

In a notable move this year, NDTV also relaunched NDTV Profit, integrating BQ Prime and BQ Prime Hindi. This rebranding aligns with Adani Group's acquisition of Quintillion Business Media in 2022.

Network18 and TV18 revealed a Scheme of Arrangement, outlining the merger of TV18 and E18 to consolidate the Network18 group's TV and digital news businesses. The merged entity will include TV18's portfolio, Network18's digital assets, and Viacom18, incorporating JioCinema. Aligned with evolving consumer preferences for integrated experiences, this merger is expected to alter India's media terrain, pending necessary approvals.

This year also saw the promoters of Bennett Coleman & Co, Samir and Vineet Jain dividing the Times Group's assets, with Samir Jain spearheading the print domain, and Vineet Jain taking charge of the broadcast and radio business. Samir gains control of the print division, including titles like The Times of India, while Vineet oversees the Times Network, Entertainment Network India, Filmfare, Femina, ET Money, and the OTT platform MX player. To offset revenue discrepancies, Vineet was entitled a sizable cash pay-out of at least Rs 3,000 crore. This move showcased a nuanced approach to the diverse facets of media under a single conglomerate, which was observed by a memorandum that was signed and legal oversight provided by Cyril Amarch and Mangaldas.

Social Media Disruptions

Amidst the global social media sector's vibrancy, Twitter witnessed a rebranding to the social media platform, changed to 'X'.

Elon Musk renamed Twitter to X in 2023 under the leadership of newly appointed CEO Linda Yaccarino. The iconic blue bird logo was replaced with an X, and tweets were referred to as posts. Introducing a membership model called ‘Twitter Blue,’ users could obtain a blue tick for $8, raising concerns about security. Musk's vision of turning the platform into an ‘everything app’ led to the rebranding as X, marking a shift in the social media landscape. Nonetheless, this move sparked mixed reactions, with some expressing security worries, while others criticised the loss of their blue badges.

Moreover, 2023 also saw Meta's new social media app, Threads, swiftly gaining attention, amassing over 100 million users in just five days. Positioned as a hybrid of Twitter and Instagram, Threads simplified registration for Instagram users. Notably, Threads garnered more interest from millennials than Gen Z, and its commitment to remaining ad-free until it reaches 1 billion users has attracted social media enthusiasts, with India leading in app downloads.

These two developments and transformations were a collective response to the challenges faced in the early part of 2023, illustrating the sector's resilience.

OTT Dominance

In the OTT space, Prasar Bharati's OTT platform, the public service broadcaster issued e-tenders, inviting bids from multi-media agencies to handle the marketing and PR aspects. The tender encompasses activities spanning pre-launch, launch, and post-launch phases, with rates aligned with the DAVP standards. The estimated cost for this tender is Rs 20 crore. Additionally, Doordarshan also geared up to populate the OTT platform with content, aiming for a minimum guaranteed sales figure of Rs five crore in the inaugural year.  

Prasar Bharati’s OTT emerged as a significant player with a strategic entry into the digital streaming space, focussing on content acquisition and promotional efforts.

The year gone by also saw NBCUniversal (NBCU) and JioCinema forging a multi-year partnership, marking an expansion of JioCinema's content library. Thousands of hours of NBCU films and TV series will be available to Indian viewers via this partnership. The collaboration taps into NBCU's extensive content portfolio, encompassing production entities and brands such as Universal Television, DreamWorks Animation, Universal Pictures, and more. The programming will be housed in a Peacock branded hub within JioCinema's SVOD tier, ‘JioCinema Premium’, showcasing NBCU's diverse content range.

Later in the year, Viacom18 opted for the strategic consolidation of its OTT platforms, Voot and JioCinema. The dissolution of Voot was apparent in its redirection to the JioCinema website, and the singular availability of the JioCinema app.

Nonetheless, 2023 also witnessed Major League Cricket (MLC) inking media rights partnership with Viacom18’s sports network. The collaboration entailed comprehensive coverage across multiple platforms, encompassing live streaming on JioCinema and broadcast television coverage on Sports18. The agreement underscored a significant move for Viacom18 in expanding its sports content portfolio.

Also, Disney Star became the official broadcaster of the ICC Men's Cricket World Cup, achieving a milestone with over 30 crore viewers tuning in for the TV live broadcast of the final match between India and Australia. The final recorded 5.9 crore viewers on Disney+ Hotstar's digital platform. The live TV broadcast accumulated 422 billion minutes of watch time, solidifying its status as the most-watched ICC Men’s World Cup to date. The substantial success of the final highlighted the widespread popularity and engagement of cricket enthusiasts, underlining the continued popularity of live sports.

As we bid farewell to 2023, and enter the year 2024, the media industry stands at the crossroads of innovation and tradition, driven by technological advancements, strategic collaborations, and an unwavering commitment to adaptability in the media landscape.