Recent valuations reveal a significant shift in the media landscape, with Disney+ Hotstar and JioCinema now surpassing their parent companies’ traditional linear TV businesses in value. According to documents reviewed by ET, leading valuation firms EY and BDO have appraised Viacom18 and Star India at impressive figures, highlighting the growing dominance of digital streaming platforms.

Valuation Insights:

• Viacom18, a joint venture between Reliance Industries (RIL) and Paramount Global, has been valued at ₹33,000 crore by EY. This valuation reflects the increasing prominence and profitability of JioCinema, which has become a major player in the Indian streaming market.
• Star India, owned by Walt Disney, has been valued at ₹26,000 crore according to BDO. This valuation underscores the ongoing strength of Disney+ Hotstar, which remains a leading platform in India despite the overall decline of linear TV viewership.

The valuations were conducted as part of strategic assessments for both companies. EY was commissioned by Reliance Industries to evaluate Viacom18 ahead of a merger deal, reflecting the strategic importance of the streaming service in the company’s portfolio. Meanwhile, BDO’s valuation of Star India aligns with Disney’s ongoing efforts to reassess its assets and focus on high-growth digital segments.

Industry Impact:

The shift in valuation highlights a broader trend in the media and entertainment industry, where digital streaming platforms are increasingly outpacing traditional linear TV businesses in terms of both audience reach and financial performance. The surge in digital viewership, accelerated by the pandemic, has led to a dramatic rise in the value of streaming services.

Future Outlook:

As Disney and Reliance continue to expand their digital footprints, the focus on streaming platforms is likely to grow. Disney+ Hotstar and JioCinema are expected to leverage their high valuations to invest further in content and technology, aiming to capture a larger share of the digital audience. This strategic focus aligns with global trends where media companies are shifting resources from linear TV to digital streaming to meet evolving consumer preferences.

Additional Context:

The valuation reports also reflect the competitive nature of the Indian media market, where both Viacom18 and Star India are investing heavily to secure exclusive content and expand their subscriber bases. The success of these streaming platforms is indicative of a larger global shift towards digital consumption, driven by technological advancements and changing viewer habits.

As streaming platforms continue to redefine the media landscape, these valuations mark a significant milestone in the transition from traditional TV to digital-first content delivery. The insights from EY and BDO highlight the growing value of digital media and set the stage for future developments in the industry.