Reliance and Disney consider 2-year ad rate freeze to secure CCI approval: Report

The companies are planning a commitment to maintain current ad rates for all advertisers and agencies over the next two years.

Reliance Industries (RIL) and Walt Disney are reportedly planning to offer the Competition Commission of India (CCI) a two-year freeze on advertising rate cards to gain approval for their proposed merger of Star India and Viacom18. According to sources cited by Economic Times, the companies are considering a commitment to maintain current ad rates for all advertisers and agencies over the next two years as part of their proposal to the anti-trust regulator.

A source informed ET that both RIL and Disney are optimistic about clearing the Competition Commission of India's (CCI) approval for the merger. They believe that a price freeze on ad rate cards could effectively address CCI’s concerns about the merger's impact on competition.

As RIL and Disney aim to finalise the merger by October, they have been exploring various measures to alleviate the regulator’s concerns regarding the potential effects on the Indian media and entertainment (M&E) industry.

In addition to the rate freeze, RIL and Disney are also proposing to shut down some of their weaker channels in Hindi and regional markets. This move is intended to address concerns about the combined entity's market share potentially exceeding the 40% threshold in several markets.

CCI is investigating the Rs 70,000 crore merger proposal between Viacom18 and Star India, raising concerns about potential antitrust issues and the dominant market shares of the two companies in both TV and streaming segments.

Also Read: Reliance, Disney seek CCI approval for merger: Reuters report