As per the report released by Reliance Industries Ltd (RIL), Viacom18 in collaboration with The Walt Disney Company, has unveiled a landmark strategic partnership that will combine its business with Star India, aiming to lead the digital transformation of India’s media industry.
This joint venture (JV) will significantly reshape the media and entertainment landscape, offering a broad spectrum of high-quality content and an enhanced digital experience for consumers in India and the Indian diaspora globally. Reliance Industries Ltd (RIL) will hold a 16.34% stake, Viacom18 will own 46.82%, and Disney will hold 36.84% in the JV. RIL will invest ₹11,500 crore at closing to drive the JV’s growth strategy, valuing it at ₹70,352 crore (approximately US$8.5 billion) on a post-money basis, excluding synergies.
Viacom18 reported robust financial results for the fourth quarter and fiscal year 2024, demonstrating strong growth across all segments. For Q4 FY24, the company’s operating revenue surged 63% year-on-year (Y-o-Y) to ₹2,419 crore, fueled by impressive performances in Sports, Movies, and News. Revenue from the Media business saw a remarkable increase, driven largely by the sports segment, with the Indian Premier League (IPL) and other significant sporting events contributing to this growth. Additionally, the release of ‘Fighter,’ a major film of 2024, bolstered revenue in the Movies segment. However, continued investments in Sports and Digital platforms impacted consolidated EBITDA for the quarter.
For FY24, Viacom18 achieved an annual operating revenue of ₹9,297 crore, up 49.4% Y-o-Y, marking one of its strongest performances. The News business saw a 19 per cent increase in revenue Y-o-Y, while Viacom18’s revenue grew by 62% Y-o-Y, with Sports being the primary driver of this growth. Investments in new verticals, particularly Sports and Digital, supported the substantial revenue increase. The group’s digital platforms, including JioCinema, Moneycontrol, and News18, saw strong growth, although these investments also impacted EBITDA.
As per the RIL report, Viacom18’s TV network share increased by 70 basis points quarter-on-quarter to 11.4%, supported by strong performances in Hindi General Entertainment Channels (GEC), Movies, and Sports. Notably, Colors achieved its highest Gross Rating Points (GRPs) in eight years and climbed to the #1 position in the market during the quarter. JioCinema witnessed a significant 50% increase in reach on the opening day of IPL 2024, with 11.3 crore viewers, and introduced new features such as commentary in regional languages and enhanced camera angle options.
The network also saw record reach and engagement for its TV network shows, with notable increases in viewership and watch-time for Bigg Boss Hindi and Bigg Boss Kannada. JioCinema’s coverage of various sporting events, including the Women’s Premier League (WPL), saw substantial growth in watch-time and reach.
Network18’s TV News bouquet maintained its position as the highest-reach news network in India, with an all-India viewership share of 10.9%. It retained leadership in English news (CNN News18), Business news (CNBC TV18), and Hindi news (News18 India). The network’s digital portfolio also demonstrated significant growth, with Moneycontrol becoming India’s #1 subscription-based news platform and Firstpost achieving rapid growth on YouTube.
In addition to the JV with Disney, Network18 announced the merger of TV18 and E18 with Network18, consolidating TV and digital news assets, and the Moneycontrol business into one listed company through a Scheme of Arrangement, which is currently in the process of obtaining requisite approvals.
This strategic alignment and financial performance underscore Viacom18’s strong market position and its commitment to driving innovation and growth in the media and entertainment sector.
