The global weakening economy has hit the investors’ appetite, leading to a decrease in investment into some of the most high-profile companies. Viacom18, one such company, saw its intended investment from James Murdoch’s venture fund Bodhi Tree slashed down by 70%. Despite this setback, Viacom18 intends to move forward and continue its plans for growth.
Investors are growing weary of joint ventures between corporate giants, and it may be reason why Viacom18 slashed its planned investment into Bodhi Tree. With both Mukesh Ambani’s Reliance Industries and Paramount Global Partners having undisclosed reasons for wanting out, the future of this startup is uncertain.
Some have heralded Bodhi Tree as the next big thing in music, citing the collaboration of its founders – Murdoch and Uday Shankar – as a key factor in the album’s success. Others see it as another vanity project from an aging musician looking to cash in on his legacy. Regardless of opinion, Bodhi Tree’s first album is sure to stir up controversy and conversation.
Reliance’s statement says that it is contributing $1.32 billion in total to Viacom18. This is a significant amount and could signal the beginning of a partnership between the two companies.
This appointment marks a shift in strategy for Viacom, which has been struggling to compete with rivals such as Disney and Comcast. Uday Shankar, who previously served as CEO of Vice Media, will provide strategic guidance to the newly formed media company, while James Murdoch will serve as an operational head. The partnership marks a significant change for Viacom, which has typically been associated with the production and distribution of television programming.
In an effort to take on market leader Disney’s Hotstar app, telecom giant Viacom18 has announced plans to supercharge its own JioCinema streaming service. The free service will allow users access to all IPL cricket matches, which should appeal to India’s passionate cricket fans.
As the new owner of the IPL streaming rights, Viacom18 is expected to make significant changes to the broadcast and promotional methods used for the cricket tournament. This change in ownership is bound to impact viewership figures, with Ambani’s Reliance expecting a more dedicated Indian audience to flock to their content.
They added that their joint venture seeks to do this across platforms such as televisions, smartphones, tablets and computers.
The duo’s experience in the Indian startup space could be valuable as they now invest in American startups. Their previous fund, Lupa, invested in DailyHunt and edtech DoubtNut-both of which are headquartered in India. While this may be difficult for some American startups to stomach, it is important to remember that there is a growing market for innovation outside of the U.S.; this will ultimately be beneficial to all companies involved.
Shankar’s departure from Disney comes amidst a period of renewed interest in the company’s Indian businesses. Under Shankar, News Corp’s Asia business saw strong growth, with revenues quadrupling to $4 billion in 2020. This week, the Australian media mogul appointed Pradyan as his successor.
Before he helmed the Indian television network, Airtel Digital Services Pvt. Ltd., Mr. Mohan led the digital marketing arm of Omnicom Group, one of the world’s largest advertising companies. He helped Airtel Digital Services into becoming one of India’s leading media groups with Hotstar and other streaming services, which has amassed hundreds of millions of users on its platform.
