New Delhi: The proposed $8.5 billion merger between Reliance Industries and Walt Disney’s Indian media assets has hit a roadblock as India’s antitrust body, the Competition Commission of India (CCI), raises concerns.
The CCI has reportedly sent nearly 100 detailed questions to both companies, focusing heavily on the impact on sports rights, particularly cricket. This scrutiny stems from the potential creation of a behemoth in the Indian entertainment industry. The combined entity would boast 120 television channels and two major streaming services, raising fears of stifled competition.
Reliance and Disney have defended the merger, arguing it won’t harm competition. They point out that crucial cricket broadcasting rights are set to expire by 2027-2028, allowing competitors to bid for them. Additionally, they argue that platforms like YouTube offer similar content for cricket fans.
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However, the CCI has questioned this comparison. YouTube’s free, user-generated content model differs significantly from subscription-based services like Netflix and Disney+. Reliance and Disney counter that YouTube offers licensed, paid content alongside user-generated content, reaching a wide audience.
Beyond sports rights, the deal’s implications for the entire entertainment landscape, including popular properties like Wimbledon, are under review. With a combined market share potentially exceeding 40%, the merger could significantly alter India’s $28 billion entertainment industry. Existing players like Zee Entertainment and Sony will be watching the CCI’s decision closely.
The CCI’s investigation is ongoing, and its final verdict will determine the fate of this mega-merger that could reshape India’s media and entertainment landscape.
