Reliance-Disney merger to command 40-45% of the TV market: Harsha Razdan

On Wednesday, the Competition Commission of India approved the proposed combination involving Reliance Industries Limited (RIL), Viacom18 Media (Viacom18), Digital18 Media, Star India Private Limited (SIPL) and Star Television Productions Limited (STPL). The merger, valued at $8.5 billion, will combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of RIL group, and SIPL, wholly owned by The Walt Disney Company (TWDC).

The merger is subject to the compliance of voluntary modifications to mitigate potential competition concerns.

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Harsha Razdan, CEO, South Asia, dentsu, called the CCI’s approval of the Reliance-Disney merger “a game-changer for India’s media industry”. He commented, “We’re witnessing the creation of the largest media conglomerate in the country, with a staggering valuation of $8.5 billion. This merger is set to command around 40-45% of the TV market and 30-35% of the digital space – a scale that’s unprecedented.”

From an advertiser’s perspective, he said, this wasn’t just consolidation, but a strategic realignment of the industry’s landscape. “With Reliance’s distribution prowess and Disney’s rich content portfolio, we’re likely to see more streamlined operations and possibly even reduced subscription costs for consumers due to improved efficiencies. Advertisers now have a one-stop shop for everything – from Hindi and regional entertainment to sports, music, and international content,” he added.

At the same time, he noted that with this scale comes the inevitable power to influence market dynamics, including pricing. According to Razdan, “The control over 80% of India’s cricket broadcasting alone speaks volumes. While some may worry about rising ad rates, this is an opportunity for smarter, more targeted ad spends and a unique chance to integrate marketing plans across TV and digital platforms for greater impact and efficiency. The sheer reach and diversity of this new entity mean that advertisers can now connect with audiences on an even larger scale, across multiple platforms.”

“Our industry must adapt by focusing on creativity and consumer-centric strategies to navigate these changes. As this giant takes form, let’s ensure that we leverage its strengths to continue delivering value-driven, impactful solutions. After all, in the world of advertising, the only constant is change, and this merger is simply the opportunity to ride the next big wave,” he further said.