The merger between Reliance Industries’ Viacom18 and Disney Star, after being granted approval from The Competition Commission of India (CCI) has met with conditions aimed at maintaining competitive balance in the media sector. In its 48-page order, the CCI outlined the requirement for the divestment of seven TV channels as part of the merger deal.
Notably, the seven channels include Star Jalsha Movies, Star Jalsha Movies HD, Colors Marathi, Colors Marathi HD, Colors Super, Hungama, and Super Hungama.
Following the merger, the CCI order highlights that the overlap in the Bengali films and Marathi general entertainment channel (GEC) segments will no longer exist. Additionally, with the joint venture being constrained by Zee, which holds a comparable market share, the combined market share in the Kannada GEC segment is expected to decrease. In the kids’ channel segment, the merged entity’s market share will also decline, with strong competition remaining from players like Warner Bros., Sony, and SunTV, ensuring a competitive landscape.
Furthermore, both Reliance Viacom18 and Disney Star have voluntarily committed not to bundle TV ad rates for cricket events across the year to obtain approval. They argued that advertisers do not typically commit to booking ad slots for all cricket events annually. However, in cases where this might occur, the advertiser would secure discounts from the broadcaster or OTT platform in exchange for a larger investment, rather than any anti-competitive bundling on the broadcaster’s part.
The order copy reads, “Notwithstanding this, the parties have provided commitments that they will not bundle the incremental sports rights accruing to the JV as a result of the proposed combination for the advertisers and will also not bundle the TV and OTT rights of the IPL. In view of the above, the Commission noted that the parties will be constrained in bundling ad slots or increasing prices for consumers and advertisers beyond a reasonable level.”
Notably, the Competition Commission of India (CCI) on August 28, approved the merger of media assets between Reliance Industries and The Walt Disney Company. With a valuation exceeding Rs 70,000 crore this landmark deal establishes the largest media empire in the country.