Slow motion: US companies cautious amid India's mega M&E Boom
US media and entertainment companies are treading cautiously in India, even as the ₹2.5 lakh crore M&E market continues to draw global attention for its scale and digital momentum.
A string of exits and ownership realignments over the past two years has highlighted the complexity of operating in one of the world's most competitive media landscapes.
India remains among the fastest-growing large media markets, combining a vast linear television base with a rapidly expanding streaming ecosystem. Low data tariffs, a young mobile-first population and rising connected TV penetration continue to fuel consumption.
Yet intense price competition and thin margins have made scale harder to monetise. Hollywood typically contributes about 10% of India's annual box office collections even in strong years, limiting theatrical upside.
In 2024, The Walt Disney Company merged its Star India business with Viacom18, backed by Reliance Industries, creating an $8.5 billion media entity. Disney retained a 37% stake, signalling a calibrated move away from direct operating control amid pressures in its US business.
In the same year, Paramount Global sold its remaining 13.01% stake in Viacom18 to Reliance Industries for ₹4,286 crore, marking a full exit from its India partnership. In January, Lionsgate sold its streaming service Lionsgate Play in South and Southeast Asia to Rohit Jain for an estimated $20 million to $30 million, exiting direct streaming operations in the region.
Paramount's India exposure, while structurally direct following the proposed $110 billion acquisition of Warner Bros. Discovery on February 27, is expected to remain strategically limited. Subject to regulatory approvals, Paramount-Skydance will inherit WBD's India assets, including Discovery Communications India.
The deal followed a hostile bidding process in which Netflix withdrew after making an $83 billion offer for WBD's streaming and studio assets. In 2025, WBD had announced plans to split the company into streaming and studios and global networks by mid-2026 to unlock value and streamline strategy.
WBD-owned Discovery Communications India, which operates 18 linear television channels and the Discovery+ streaming service, reported a 5% decline in net profit to ₹103 crore in FY25, even as operating revenue rose 8% to ₹1,678 crore.
Industry executives say India is unlikely to be an immediate strategic priority for the combined entity.
"The playbook for US studios has shifted toward licensing rather than building scale on the ground. Disney, Paramount, WBD and NBCUniversal are monetising content through JioHotstar instead of investing in standalone platforms," said a media analyst who declined to be named.
A string of exits and ownership realignments over the past two years has highlighted the complexity of operating in one of the world's most competitive media landscapes.
India remains among the fastest-growing large media markets, combining a vast linear television base with a rapidly expanding streaming ecosystem. Low data tariffs, a young mobile-first population and rising connected TV penetration continue to fuel consumption.
Yet intense price competition and thin margins have made scale harder to monetise. Hollywood typically contributes about 10% of India's annual box office collections even in strong years, limiting theatrical upside.
In 2024, The Walt Disney Company merged its Star India business with Viacom18, backed by Reliance Industries, creating an $8.5 billion media entity. Disney retained a 37% stake, signalling a calibrated move away from direct operating control amid pressures in its US business.
In the same year, Paramount Global sold its remaining 13.01% stake in Viacom18 to Reliance Industries for ₹4,286 crore, marking a full exit from its India partnership. In January, Lionsgate sold its streaming service Lionsgate Play in South and Southeast Asia to Rohit Jain for an estimated $20 million to $30 million, exiting direct streaming operations in the region.
Paramount's India exposure, while structurally direct following the proposed $110 billion acquisition of Warner Bros. Discovery on February 27, is expected to remain strategically limited. Subject to regulatory approvals, Paramount-Skydance will inherit WBD's India assets, including Discovery Communications India.
The deal followed a hostile bidding process in which Netflix withdrew after making an $83 billion offer for WBD's streaming and studio assets. In 2025, WBD had announced plans to split the company into streaming and studios and global networks by mid-2026 to unlock value and streamline strategy.
WBD-owned Discovery Communications India, which operates 18 linear television channels and the Discovery+ streaming service, reported a 5% decline in net profit to ₹103 crore in FY25, even as operating revenue rose 8% to ₹1,678 crore.
Industry executives say India is unlikely to be an immediate strategic priority for the combined entity.
"The playbook for US studios has shifted toward licensing rather than building scale on the ground. Disney, Paramount, WBD and NBCUniversal are monetising content through JioHotstar instead of investing in standalone platforms," said a media analyst who declined to be named.
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