Reliance Industries and Walt Disney are poised to divest seven television channels as part of their merger, which has received approval from the Competition Commission of India (CCI). This merger aims to create a media giant valued at approximately ₹70,000 crore. To mitigate concerns about potential anti-competitive practices, the CCI issued a comprehensive 48-page order detailing various measures.
The merged entity will control significant sports assets, including the rights to the Indian Premier League (IPL), ICC cricket tournaments, Wimbledon, Pro Kabaddi League, and BCCI domestic cricket matches, across both television and digital platforms. Advertising industry representatives raised alarms about the possibility of increased ad rates during major cricket events due to the consolidation of Reliance’s media assets and Star India, a subsidiary of Walt Disney.
In response to these concerns, Reliance and Walt Disney have agreed not to impose unreasonable advertising rates for ICC and IPL events on their television and streaming services. The CCI order explicitly prohibits bundling advertisement slots for major cricket events like the IPL, ICC, and BCCI matches with Prasar Bharti, the public broadcaster. Furthermore, both parties have committed to not bundling ad sales for OTT platforms, ensuring that Disney+ Hotstar and JioCinema operate independently.
The divestment involves the sale of seven channels: Star Jalsha Movies, Star Jalsha Movies HD, Colors Marathi, Colors Marathi HD, Colors Super (Kannada General Entertainment Channel), Hungama, and Super Hungama (Kids Channel). The sale will include licenses for trademarks, channel names, and logos for a defined period. For five years following the divestment, neither Reliance nor Disney can acquire any stake or influence over these channels.
The CCI has mandated that the buyers of these channels cannot include Zee Entertainment, Culver Max Entertainment (Sony Pictures), or South-based Sun TV Network. An independent agency will monitor the divestment process to ensure compliance with CCI regulations. The merger, initially scrutinized by the anti-trust regulator earlier this year, received approval after the parties proposed modifications to the original transaction structure.
This merger marks a significant shift in the Indian media landscape, and it will be interesting to observe how it affects competition and advertising practices in the sector.
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