In a significant development in the Indian media, the proposed $8.5 billion merger between Reliance Industries and Walt Disney has come under intense scrutiny by the Competition Commission of India (CCI). The anti-trust watchdog has sent over 100 letters to the companies, particularly focusing on the deal’s impact on cricket streaming rights.

The merger, announced in February, will create India’s largest entertainment group with 120 TV channels and two streaming services. Cricket has always been considered a religion in India and has played a vital role in the growth of the country’s media. The Reliance-Disney merger will consolidate ownership of cricket rights.

The Indian Competition Commission’s extensive inquiry indicates that some kind of deal has definitely been struck between Reliance-Disney. Questions have also been raised as to why YouTube should be considered in this market like subscription-based streaming services like Netflix and Disney Plus.

CCI raised important questions

Reliance and Disney have cited the expiry of existing cricket rights in 2027 and 2028 to argue that their merger will not harm competition. They believe this will allow for competitive bidding by rivals. Additionally, they have pointed out that advertisers can reach cricket-watching audiences through various platforms, including YouTube.

However, data from Media Partners Asia shows that while YouTube commands 88% of India’s online video market, this mainly consists of free, user-generated content. The premium video market, dominated by curated long-form content on streaming services, accounts for just 12% of the total. The CCI has also requested detailed information about sports rights ownership, including past bidding processes.