The mega merger between Viacom 18 and Disney Hotstar in India, announced earlier this week, is as big as it gets. The joint venture, valued at US $8.5 billion (Rs 70,352 crore) will create the biggest entertainment behemoth in India, but what does it really mean for the future of those gigantic bids for media rights of cricket properties like IPL (Indian Premier League), ICC (International Cricket Council) events, and sport in general?
Not without reason is India’s advertising industry a little anxious that the merged identity will have a near monopoly over sports properties as it will collectively control 75-80 per cent of the Indian sports market, in both linear TV and digital platforms. This in turn, they feel, might reduce the bargaining power for the country’s media buying agencies.
Once the due diligence is done and the merger is completed by the first quarter of 2025, the joint venture will boast 70 channels from Star India and 38 TV channels from Viacom 18 in eight languages, along with two large OTT platforms, Jio Cinema and Hotstar.
An entity which the other players will find impossible to match, given the deep pockets of Reliance Industries Ltd (RIL) and properties like IPL (both TV and digital), ICC cricket tournaments (TV and digital), BCCI domestic cricket, Wimbledon, and the Pro Kabaddi League under the new entity’s collective control.
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