In Short:
Reliance Industries’ media business losses increased to ₹188 crore in FY25’s second quarter, with revenues declining 2% to ₹1,825 crore due to decreased movie and TV ad revenues. Their news revenue grew 6% thanks to digital ads. JioCinema has 16 million paid subscribers, benefiting from free IPL streaming. Overall, the entertainment segment struggled, affected by no new releases from Viacom18 Studios.
Reliance Industries Faces Wider Losses in Media Business
In a recent report, **Reliance Industries** revealed that the losses in its media division have increased during the second quarter of FY25, reaching ₹188 crore, up from ₹155 crore in the same period last year. This downturn is largely attributed to a 2% decline in revenue, which totaled ₹1,825 crore, stemming from a slump in movie-related earnings and a quieter television advertising market.
Strategic Moves in Media Consolidation
To counter these challenges, **Reliance Industries** has taken significant steps by merging its news operations with **Network18**. Additionally, the impending merger between **Viacom18** and **Star India**, set for the next quarter, is anticipated to forge an even more formidable media giant.
JioCinema’s Growing Footprint
On a brighter note, **JioCinema** has been making waves with its user-friendly approach—boasting 16 million paid subscribers and a strategy of offering live streaming of the **IPL** for free, which has clearly paid off.
Positive Trends in News Revenue
Interestingly, the revenue from the news segment saw a 6% increase, buoyed by a rise in advertising across the digital space for various brands. However, the overall TV advertising landscape was subdued during the quarter, with a notable decline of over 20% in news genre ad volumes industry-wide. Nonetheless, the **EBITDA** for the news division showcased an improvement, signaling a positive turnaround in the first half of the fiscal year.
Challenges in the Entertainment Sector
On the entertainment front, operating revenue dipped by 5%, primarily due to a fall in movie-related income. **Viacom18 Studios** did not release any films during this quarter, which hindered growth. However, this decline was partially mitigated by increased subscription revenue, a result of new pricing strategies, along with the better monetization of its sports portfolio—an area where the company is pouring considerable resources.
Digital Advertising Driving Growth
Overall, the boost in advertising revenue has been predominantly driven by digital platforms, benefiting both the sports and non-sports sectors.
