India’s National Company Law Tribunal (NCLT) Mumbai Bench has approved a high-profile merger between Reliance Industries Limited’s (RIL) media arm and Disney’s Indian entertainment assets. This merger is set to reshape the Indian media landscape, combining two major players in the market and positioning them to compete with global giants like Netflix and Amazon.
The merger was greenlit by the NCLT after approval from shareholders and creditors of the involved companies. Notably, regulatory bodies, including the Ministry of Corporate Affairs and the Income Tax Department, raised no objections following clarifications. The approval is subject to certain conditions set by the Competition Commission of India, which were voluntarily accepted by the companies involved.
While no prior approval was required from the Ministry of Information and Broadcasting for the merger itself, the transfer of TV channels from RIL’s Viacom18 to Disney’s Star India will require additional approvals. Both companies have agreed to obtain this approval within the stipulated time.
The merged entity will boast 120 TV channels and two streaming services, making it a formidable competitor in India’s entertainment industry. The merger will also significantly impact the TV and streaming advertising market, with the combined entity expected to control about 40% of the market share. This dominant position will allow the merged company to influence advertising pricing, potentially reshaping the economic landscape of Indian media.
| Company | TV Channels | Streaming Services | Market Share (TV & Streaming Ads) |
|---|---|---|---|
| Reliance-Disney | 120 | 2 | 40% |
| Sony-Zee | 70 | 1 | 25% |
| Netflix | 0 | 1 | 10% |
| Amazon | 0 | 1 | 15% |
The merger is expected to strengthen RIL’s media and entertainment portfolio, which includes TV broadcasting, streaming platforms, and content production capabilities. With Disney’s Star India and its streaming platform Disney+ Hotstar joining forces with RIL’s Viacom18 and JioCinema, the combined entity will dominate cricket broadcasting rights, a key driver of viewer engagement in India.
This merger could be a game-changer not only for the Indian media industry but also for global players looking to enter or expand in the Indian market. With a massive audience base and the potential to dictate market terms, the new entity will be a significant force in the media world,