With the merger between Reliance Industries Limited (RIL) and Walt Disney underway, the two companies have announced plans to divest seven TV channels and also ensure that they have separate, non-bundles advertisement sales for major cricket events. This comes after the approval of the Competition Commission of India (CCI) for the merger of these media assets.
Previously, CCI had issued a show-cause notice to these companies regarding the possibility of anti-competition practices. In response, RIL and Walt Disney have voluntarily committed that they “will not bundle together OTT ad slot sales for all three cricketing rights available” with them. Additionally, both companies have also assured that they will not unnecessarily increase advertisement rates for ICC and IPL events.
Furthermore, the merger of RIL and Walt Disney will create an INR 70,000 crore media giant in India that will hold broadcasting rights for prominent sporting events such as the ICC cricket tournaments, IPL (both on TV and digital), BCCI domestic cricketing events, Wimbledon and the Pro Kabaddi League, to name a few. Hence, given the impact of this merger on sports advertising, the advertising industry had raised concerns over this merger for the possibility of higher costs due to a monopoly.
However, CCI interfered before the merger went through, which has now also published a detailed 48-page order that lists different remedial measures which should be taken to address potential anti-competitive behaviour post the merger between the two companies.
Since then, RIL and Walt Disney have voluntarily committed that they will not bundle advertisement slots. Notably, both OTT platforms, Disney+ Hotstar by Walt Disney and JioCinema by RIL would continue to operate simultaneously and separately.
The CCI said, “Additionally, the parties will not bundle together ad slot sales for IPL on TV and IPL on OTT.” It added that both companies would also ensure implementation of Sports Broadcasting Signals, which allows for public broadcasters like DoorDarshan to retransmit major sporting events as a free-to-air service.