Disney Star and Reliance Industries are merging, which could give them control over 75-80% of sports broadcasting in India, especially cricket.
This mega OTT merger has raised concerns about the creation of a monopoly, which might lead to less competition and higher prices.
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The Competition Commission of India (CCI) has approved the merger with conditions to ensure fair competition.
This merger could be a significant opportunity for advertisers.
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Industry experts note that advertisers will benefit from a single platform that covers a wide range of content, including sports, entertainment, and digital media.
This larger reach could make ad spending more effective, though it might also lead to higher ad rates due to the combined entity’s market power.
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The new entity will have a substantial share of the TV and digital markets, with control over major cricket tournaments like the Indian Premier League (IPL) and ICC events. This could drive up advertising revenues, given the popularity of cricket in India.
Regulatory approvals are still pending, and the merger is expected to be finalized by early 2025.
There are concerns that smaller competitors might struggle to compete. The CCI and other regulators will need to ensure that the merger doesn’t create an unfair market advantage.
Additionally, the merger’s impact on existing sports broadcasting rights, such as those for the IPL, may face further scrutiny and approval from governing bodies like the Board of Control for Cricket in India (BCCI).
