RIL & Disney to separate ad slot sales for cricketing rights: CCI on $8.5-bn merger

Reliance Industries-owned Viacom18 and Star India Pvt Ltd have agreed not to bundle television and OTT advertising slot sales for their cricketing rights—including the Indian Premier League (IPL), the International Cricket Council (ICC), and the Board of Control for Cricket in India (BCCI)—for the remaining tenure of their existing rights.

This agreement was noted by the Competition Commission of India (CCI), while approving the RIL-Disney $8.5-billion merger in August this year, with the detailed order being published on Tuesday.

This decision aims to enhance competition in the advertising market and ensure fair access for advertisers.

The CCI noted that under ‘Schedule 3 - Commitments in Sports Segment’, the parties ( RIL and Walt Disney ) have submitted voluntary commitments and also provided certain voluntary clarifications to these commitments

“The Parties will not bundle together the TV ad slot sales for all three cricketing rights available with the Parties i.e., IPL , ICC and BCCI for the balance tenure of the existing rights, it noted. The parties will not bundle together OTT ad slot sales for all three cricketing rights available with the Parties i.e., IPL, ICC, and BCCI for the balance tenure of the existing rights,” the CCI noted in its detailed order of 48 pages.

It has noted that the parties undertake to ensure implementation of Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act 2007 in letter and spirit.

As part of seeking CCI approval, the parties have said that they will procure to supply the advertisement space on their streaming platforms on fair, transparent and non-discriminatory terms till the current rights held by them expire.

They have also assured that they will not increase the advertisement rates to an unreasonable level, on their TV and streaming platforms for the ICC events and IPL events for which they hold the broadcasting rights as on date that is, till these current rights are held by the parties.

“The Parties undertake that the major cricketing events for which they currently hold rights, including but not limited to IL and ICC tournaments, will be broadcasted on their linear TV channels and streaming platforms on an either advertisement-based model or subscription model or hybrid model.

“In case of subscription model or hybrid model the Parties undertake to charge subscription fees to its viewers, which will be commensurate with industry standards (for TV, Parties will adhere to subscription rates as per TRAI Regulations; and for OTT streaming, the subscription rates charged by the Parties will not be the highest in the industry, based on comparison on a like to like basis for the time period till the current rights held by the Parties expire,” the CCI order on the merger states.

It was also submitted by the parties that the sports of national importance listed in the notification issued under the above Act will be broadcast on the free networks of Prasar Bharati.

CCI has also observed that seven TV channels—Star India’s Hungama, Super Hungama, Star Jalsha Movies, Star Jalsha Movies HD, and Viacom18’s Colors Marathi, Colors Marathi HD and Colors Super will have to be sold.

On February 28, 2024, Star India Private Limited (Star India) entered into a binding definitive agreement with Reliance Industries Limited (RIL) and Viacom 18 Media Private Limited (Viacom 18), which is majority owned and controlled by RIL, to form a joint venture that will combine the businesses of Viacom18 and Star India consisting of entertainment and sports pay TV and free-to-air networks, DTC services, film and television content library and certain production businesses (the Star India Transaction).

RIL will have an effective 56% controlling interest in the joint venture with 37% held by the Company, and 7% by Bodhi Tree Systems, a third-party investment company.

The Star India transaction is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory approvals and government consents. If closing has not occurred by February 28, 2026, Star India or RIL may terminate the transaction.