Competition Commission of India (CCI) gave a green signal to the merger of RIL and Disney India; according to Reuters, CCI approved the deal with modifications voluntarily submitted by the companies, though no further details were shared. They further mentioned that the companies are willing to give concessions, which include a commitment not to increase advertising rates for streamed cricket matches unreasonably and the sale of 7-8 non-sports TV channels.
Not only this, but the companies also promised not to bundle and sell advertising slots across different cricket tournaments and to keep subscription rates for their services within regulatory limits. They will also provide free cricket match streaming in the coming years, most probably to attract users to their platforms, hoping they will eventually purchase subscriptions.
However, both Reliance and Disney India declined to comment on this report from Reuters.
What Will Be The Impact?
This merger will enable India’s biggest entertainment company to compete with Sony, Netflix, and Amazon, strengthening Mukesh Ambani’s position in the $28 billion entertainment sector.
The companies might have received approval from regulators, but this still raises concerns about cricket rights for TV and streaming in India. After the merger, the entity will have major control over these cricket rights, which might hurt advertisers. Both companies have spent over $9.5 billion in recent years on the streaming and TV rights of IPL (Indian Premier League), international cricket, and more.
