Disney-Reliance Merger: Potential Shutdown of Hindi and Regional Channels Looms
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Why Disney, RIL may 'need to' shut down some Hindi and regional channels - Times of India
Reliance Industries Limited (RIL) and Walt Disney may reportedly shut down multiple Hindi and regional TV channels to secure regulatory approval from the Competition Commission of India (CCI) for their merger. According to a report by Economic Times, sources familiar with the matter have said that the companies may shut down some secondary Hindi channels of Star India and Viacom 18. The report, however, adds that Reliance is keen to retain the popular Star Plus and Colors channels.Additionally, the companies may also shut down some TV channels in the Kannada, Marathi, and Bangla language markets for the merger to get CCI's approval. The report cited sources (who remain unidentified) to claim that the two companies are hoping that the CCI may not ask them to shut or divest their flagship Hindi channels, Star Plus and Colors, or part with certain cricket properties in exchange for shutting down its secondary channels. "Except for the flagship channels, other Hindi GECs (general entertainment channels) might be closed down. In the regional markets, the channels that are struggling will be shut down. Star has much more powerful regional channels than Viacom18, which is strong only in the Kannada market," one of the sources said. CCI's concerns with the merger If these TV channels aren't removed, the combined entity of Star and Viacom18 would dominate the Hindi, Kannada, Bangla, and Marathi TV channel markets with a share exceeding 40%. It would also hold a near-monopoly in sports broadcasting, owning all major cricket and non-cricket rights. Any entity with a market share above 40% is considered dominant by CCI. Timeline and ownership structure of the proposed merger The report also notes that the company is planning to complete the merger by October 2026 with RIL and Disney will control 56% and 37% stake in the proposed merged entity. The two companies have until February 2026 to complete the entire process. The proposed merged entity will have more than 110 TV channels and two streaming platforms, Disney+ Hotstar and JioCinema. Meanwhile, Bodhi Tree Systems, a company promoted by James Murdoch and Uday Shankar, will own a 7% stake in the new entity. Shankar is expected to serve as the vice chairperson while Nita Ambani, wife of RIL promoter Mukesh Ambani, will be the chairperson of the proposed merged entity's board. Apart from CCI, the merger is subject to regulatory approvals from the National Company Law Tribunal (NCLAT) as well. The merger of Star India and Viacom18 will create an entity which will be valued at over Rs 70,000 crore. Viacom18 and Star are individually estimated to be worth around Rs 33,000 crore and Rs 26,000 crore, respectively. Reliance Industries will further invest Rs 11,500 crore in the combined entity. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
[2]
Disney RIL may shut down some 'secondary' channels to get CCI approval for merger
Reliance Industries Limited (RIL) and Walt Disney may reportedly shut down multiple Hindi and regional TV channels to secure regulatory approval from the Competition Commission of India (CCI) for their merger. According to a report by Economic Times, sources familiar with the matter have said that the companies may shut down some secondary Hindi channels of Star India and Viacom 18. The report, however, adds that Reliance is keen to retain the popular Star Plus and Colors channels. Additionally, the companies may also shut down some TV channels in the Kannada, Marathi, and Bangla language markets for the merger to get CCI's approval. The report cited sources (who remain unidentified) to claim that the two companies are hoping that the CCI may not ask them to shut or divest their flagship Hindi channels, Star Plus and Colors, or part with certain cricket properties in exchange for shutting down its secondary channels. "Except for the flagship channels, other Hindi GECs (general entertainment channels) might be closed down. In the regional markets, the channels that are struggling will be shut down. Star has much more powerful regional channels than Viacom18, which is strong only in the Kannada market," one of the sources said. CCI's concerns with the merger If these TV channels aren't removed, the combined entity of Star and Viacom18 would dominate the Hindi, Kannada, Bangla, and Marathi TV channel markets with a share exceeding 40%. It would also hold a near-monopoly in sports broadcasting, owning all major cricket and non-cricket rights. Any entity with a market share above 40% is considered dominant by CCI. Timeline and ownership structure of the proposed merger The report also notes that the company is planning to complete the merger by October 2026 with RIL and Disney will control 56% and 37% stake in the proposed merged entity. The two companies have until February 2026 to complete the entire process. The proposed merged entity will have more than 110 TV channels and two streaming platforms, Disney+ Hotstar and JioCinema. Meanwhile, Bodhi Tree Systems, a company promoted by James Murdoch and Uday Shankar, will own a 7% stake in the new entity. Shankar is expected to serve as the vice chairperson while Nita Ambani, wife of RIL promoter Mukesh Ambani, will be the chairperson of the proposed merged entity's board. Apart from CCI, the merger is subject to regulatory approvals from the National Company Law Tribunal (NCLAT) as well. The merger of Star India and Viacom18 will create an entity which will be valued at over Rs 70,000 crore. Viacom18 and Star are individually estimated to be worth around Rs 33,000 crore and Rs 26,000 crore, respectively. Reliance Industries will further invest Rs 11,500 crore in the combined entity. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
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Disney and Reliance Industries Limited (RIL) may need to close some Hindi and regional channels to secure approval for their merger from the Competition Commission of India (CCI). This move aims to address market dominance concerns in the media and entertainment sector.
Merger Challenges: Disney and Reliance Face Regulatory Hurdles
The proposed merger between Disney and Reliance Industries Limited (RIL) is facing potential roadblocks as the companies may need to shut down some of their Hindi and regional channels to gain approval from the Competition Commission of India (CCI)
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. This development comes as the media giants seek to address concerns about market dominance in the rapidly evolving Indian media and entertainment landscape.Regulatory Scrutiny and Market Dominance
The CCI, India's antitrust watchdog, is closely examining the merger deal to ensure it doesn't lead to an unfair advantage in the market. The combined entity of Disney and RIL would control a significant portion of the television market, particularly in the Hindi and regional language segments
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. This concentration of power has raised concerns about potential anti-competitive practices and the need for maintaining a diverse media ecosystem.Potential Channel Closures
To alleviate these concerns and secure regulatory approval, Disney and RIL are considering the closure of some of their secondary channels. This strategic move would help reduce their combined market share and demonstrate a commitment to fair competition. The channels likely to be affected are those with lower viewership or those that overlap in content and target audience between the two companies
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.Impact on the Indian Media Landscape
The potential shutdown of these channels could have far-reaching implications for the Indian media industry. While it may lead to a more balanced market structure, it could also result in job losses and a reduction in content diversity. Viewers who rely on these niche or regional channels for entertainment and information may need to seek alternatives
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Strategic Implications for Disney and RIL
For Disney and RIL, this move represents a calculated trade-off between market presence and regulatory compliance. By voluntarily reducing their channel portfolio, they aim to demonstrate their commitment to fair competition and increase the likelihood of merger approval. This strategy aligns with global trends where media conglomerates are streamlining their operations to focus on core assets and digital platforms
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.The Path Forward
As negotiations with the CCI continue, Disney and RIL will need to carefully balance their business interests with regulatory requirements. The outcome of this merger and the associated channel closures could set a precedent for future media consolidations in India. Industry observers and competitors will be watching closely to see how this delicate balancing act unfolds and what it means for the future of Indian broadcasting
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