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Zee Entertainment has filed a $3 million lawsuit against JioStar, the joint venture between Reliance Industries and The Walt Disney Company, alleging unauthorized use of its music. The media company claims JioStar exploited its copyrighted music more than 50 times after licensing agreements expired, following commercial disagreements that prevented contract renewals.
This legal action comes as India's media and entertainment market experiences rapid consolidation and fierce competition. JioStar operates the popular JioHotstar platform, which boasts approximately 500 million monthly users and holds broadcast rights for major sporting events. Zee Entertainment, a long-standing media group, possesses a vast catalog of over 19,450 songs across 17 languages.
A New Delhi court has issued an interim order requiring JioStar to cease any infringement of Zee's works on its platforms within 15 days. The next hearing is scheduled for July 23. This dispute follows Zee's similar lawsuit against fashion retailer Nykaa for alleged copyright misuse, where Zee sought $210,000. Separately, Reliance and Zee are involved in arbitration in London, with Reliance claiming $1 billion from Zee for exiting a cricket licensing deal.
The Indian media and entertainment sector is projected to reach INR 2.7 trillion by 2025, with digital media becoming its largest segment at 32% of total revenues. This growth fuels intense competition, with platforms like Netflix, SonyLIV, and Amazon Prime Video aggressively localizing content and investing in original productions.
Zee Entertainment's stock has faced pressure, trading near its 52-week low range of ₹68-₹152, despite a P/E ratio between 11.7x and 15.3x and a market capitalization of approximately ₹9,077 crore. Analysts generally maintain "Buy" or "Outperform" ratings with price targets around 113-125 INR, though the company has reported low sales growth and return on equity over the past five years.
In contrast, Reliance Industries is a large conglomerate with a market cap near ₹19.5 trillion and a P/E ratio of about 24.1x. Analysts overwhelmingly rate Reliance "Strong Buy," with price targets around 1690-1700 INR, driven by significant stock gains and diversification strategies. JioStar leverages this scale with a hybrid model aimed at globalizing Indian content.
Zee Entertainment also faces scrutiny regarding governance, with the Securities and Exchange Board of India (SEBI) issuing a notice over alleged fund diversion and lapses dating back to 2019. These concerns contributed to the stalled merger with Sony Pictures Networks India. The company's low promoter holding of 3.98% and past sales growth issues add to its challenges.
Looking ahead, Zee's performance will depend on navigating legal battles and governance issues amidst intense market competition. Reliance Industries, favored by analysts, is expected to continue its growth trajectory based on expansion plans and strong market momentum.