Disney and Reliance have reportedly offered some concessions to secure an India antitrust approval for their $8.5 billion media merger. BUT, as expected, are unwilling to sell the crown jewels of their media rights portfolio – cricket.
For the record, the linear television and streaming rights of the three biggest and most expensive cricket properties in the world – IPL, BCCI and ICC – are either with Disney’s India subsidiary Star or Reliance controlled Viacom18.
Reuters reported earlier this week that the Competition Commission of India (CCI) sent a warning notice to the companies expressing concern that their merged entity will have a tight grip on most cricket rights for TV and streaming in India, and can hurt advertisers.
In their response, the companies have offered to go easy on advertising rate hikes and not increase them unreasonably, sources close to the developments told the news agency. It bears noting here though that as per Economic Times, the offer before the CCI was of a two-year moratorium on any increases in ad rates. Seen from this perch, the Reuters report on the matter appears more in line with what has actually transpired.
Many antitrust experts had said that one way to clear the antitrust hurdle was to sell some cricket rights, be it for some tournaments or broadcast medium like TV. But Disney and Reliance have made a new private submission at the CCI in which they have said they are unwilling to do so, Reuters quotes sources close to the developments as having said.
Reliance-Disney are aiming to create India’s biggest entertainment player which will compete with Sony, Netflix and Amazon with 120 TV channels and two streaming services.
