RIL, Disney mull 2-year ad rate freeze proposal for CCI approval: Report
The move may expedite CCI nod for the merger and also have a low impact on revenue, said a news report quoting media agency officials
In a bid to get the approval of the Competition Commission of India (CCI) for their proposed merger, Reliance Industries Ltd (RIL) and Walt Disney are reportedly planning to tell the anti-trust watchdog that they will put into place, a two-year freeze on advertising rate cards.
A news report quoting a person privy to the matter said that a proposal is being discussed to offer a two-year price freeze on ad rate cards to all advertisers and agencies. The report also quoted media agency officials who said that the proposal may not only expedite CCI approval but also ensure that there is low to negligible revenue loss.
The two parties intend to complete the merger by October but is pending approval from CCI. The regulator will give its nod only after it’s convinced that the merger doesn’t hurt the Indian broadcast and streaming market. The primary concern for the CCI appears to be the control over cricket broadcasting rights, which could potentially lead to issues with pricing and market dominance.
In light of the impending merger, reports have said that RIL and Disney will divest some of their weaker channels in regional markets to ensure that the combined entity’s market share doesn’t cross 40%.
