If you follow Binged or the entertainment industry in general then you would know that Reliance Industries and Walt Disney are merging their entertainment wings.
They have teamed up to create a giant company worth over Rs 70,000 crore. It will easily make them the most powerful force in the Indian media.
However, there were concerns about how this deal would disrupt advertising costs during cricket streaming.
To curb that the Competition Commission of India (CCI) has approved the merger with some important conditions. These rules will try to make sure that advertisers are not charged unfairly high prices for slots during popular sporting events.
Both companies, Reliance and Disney, have agreed not to increase advertising rates to unreasonable levels for these big events.
Additionally, both companies have promised not to bundle advertisement sales. This means that advertisers can choose to buy slots on TV or digital platforms separately, giving them more freedom and flexibility. The merged entity can’t force advertisers to buy slots on both TV and OTT compulsarily.
It also helps keep competition healthy in the market.
As part of the deal, Reliance and Disney will also sell seven TV channels, such as Star Jalsha Movies and Colors Marathi, to other companies. This is to make sure that no one company has too much control over the market. For five years, Reliance and Disney cannot even buy back these channels or try to control them again.
The CCI will also appoint an independent agency to monitor the sale of these channels to ensure everything is done fairly.
There is a fair set of rules. Let’s see how efficiently they are followed.
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