Gautam Adani and Mukesh Ambani, Asia’s two wealthiest men, are doubling down on India’s media business, escalating rivalry in a market where Netflix Inc. and Amazon.com Inc. are also battling for over a billion users.
Gautam Adani and Mukesh Ambani are gearing up for a showdown with Netflix and Amazon:
In a capital round headed by James Murdoch-backed Bodhi Tree Systems, Ambani’s local joint venture with Paramount Global, Viacom18 Media Pvt., is slated to get 135 billion rupees ($1.8 billion). Separately, the tycoon’s flagship firm, Adani Enterprises Ltd., announced the formation of a new media division, indicating his desire to capitalize on the rising sector.
The Viacom18 investment and Adani’s foray into media usher in a new era in the competition for content in a market, that boasts a thriving local film industry, a burgeoning middle class, and fast-increasing internet connectivity. However, it has proven to be a difficult market. Netflix, for example, has had to reduce its rates to attract price-conscious customers.
According to Vivek Couto, managing director of Media Partners Asia, “India is the only full-scale, high-growth potential in Asia outside of China.” “Indonesia is there as well, but it’s a few steps behind in terms of scalability.”
On Thursday, Reliance’s stock rose 1.5 per cent in Mumbai. TV18 Broadcast Ltd. has down 18%, while Network18 has dropped 20%.
Adani is only getting started in the Indian media business, while Ambani’s Reliance Industries Ltd. expands its reach through his Network18 Media & Investments Ltd. According to a statement, Adani Media Ventures Ltd. agreed to purchase a share in Quintillion Business Media Pvt. last month. Quintillion was a Bloomberg LP (parent company of Bloomberg News) Indian partner.
Viacom18 is preparing for an epic battle with Disney, Amazon, and Sony Group Corp. for broadcast rights to the Indian Premier League, or IPL, a prized annual cricket tournament that is roughly equivalent to the Super Bowl, with $1.8 billion from Bodhi Tree and an additional $216 million from a Reliance arm. According to sources familiar with the situation, bids are expected to reach $5 billion.
The IPL attracted 380 million viewers last year, and whoever broadcaster wins the rights will certainly gain millions of new customers in a very competitive market.
Bodhi Tree’s investment also signals the Murdoch family’s comeback to an entertainment industry it left behind when Walt Disney Co. acquired a swath of 21st Century Fox properties, including Star India, in 2019. Hotstar, a streaming network popular with millions of cricket fans worldwide, is now owned by Disney.
Murdoch and Uday Shankar, the former CEO of Star India and Disney Asia, have developed a new Bodhi Tree platform. The Qatar Investment Authority, the country’s sovereign wealth fund, is a shareholder.
Separately, Adani Group announced the formation of AMG Media Networks on Wednesday, stating that it will focus on publishing, advertising, broadcasting, and distributing content across various forms of media networks. It didn’t go into detail.
Late last year, Sony and Zee Entertainment Enterprises Ltd., a local media conglomerate, decided to merge, creating a media giant worth almost $10 billion.
