The Competition Commission of India (CCI) has granted approval for the $8.5 billion merger between Reliance Industries and Walt Disney India’s media assets, moving the two companies closer to forming a major entertainment powerhouse. The merger, subject to voluntary modifications, is set to create a formidable competitor to global giants such as Amazon, Netflix, and Sony Pictures Networks.
To address concerns raised by the CCI regarding potential monopolistic practices in India’s media and entertainment sector, Reliance and Disney have agreed to several key concessions. These include the divestment of certain television channels from their portfolios and the implementation of advertising price caps for streamed cricket matches. The CCI’s primary concern was that the merger could lead to a monopoly over cricket broadcast rights, allowing the combined entity to significantly increase advertisement rates.
Cricket, which enjoys an enormous following in India and beyond, holds considerable commercial value, with broadcast rights often fetching billions of dollars. Reliance’s Viacom18 currently holds TV rights for domestic and international cricket matches organized by the Board of Control for Cricket in India (BCCI). Disney, on the other hand, holds television rights for the Indian Premier League (IPL) until 2027 and digital rights for International Cricket Council (ICC) matches in India until the same year. Reliance’s Jio Cinema also holds streaming rights for the IPL until 2027.
According to a report by Reuters, as part of the merger conditions, Reliance and Disney will divest 7-8 non-sports TV channels, primarily in regional languages. Additionally, they have pledged not to unreasonably increase advertising rates for streamed cricket matches and have committed to keeping subscription rates within regulatory limits.
On Wednesday, the CCI announced its approval of the proposed combination involving Reliance, Viacom18 Media, Digital18 Media, Star India, and Star Television Productions, with the details of the modifications submitted voluntarily by the companies not disclosed.
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