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"Cricket Broadcasting Landscape Set for Transformation: RIL-Disney Star Merger Impact"

Financial Expert Inc. 01 Mar, 2024 157

The anticipated mega merger between Reliance Industries Ltd (RIL) and Disney Star is set to profoundly transform the broadcast landscape in the country, particularly within the realm of cricket coverage. This consolidation is poised to impact numerous established platforms, both traditional and digital, with Jio Cinema emerging as the primary digital hub for cricket content.

This encompassing term, 'all cricket,' will include a wide array of events, ranging from prestigious International Cricket Council (ICC) tournaments to the immensely popular Indian Premier League (IPL) and various domestic cricket leagues. Linear broadcasting platforms for such events will predominantly be anchored by Star Sports, the country's longstanding sports television channel.

The monumental INR 70,352 crore merger, spearheaded by RIL, could potentially lead to the gradual integration of Disney Hotstar, a prominent digital platform, into Jio Cinema, consolidating their respective offerings. Notably, Hotstar's rights for ICC events are poised to transition to Jio Cinema, while Star Sports will retain its broadcasting rights for ICC events and the IPL.

Sports 18, an RIL-owned sports television channel introduced just last year, may face the prospect of redundancy or a diminished role, with properties such as India bilateral cricket and the WPL potentially migrating to Star Sports channels.

However, the implementation of these changes will require time, as the agreement unveiled on Wednesday (February 28) by RIL, Viacom 18 Media Private Limited (Viacom18), and Walt Disney Company necessitates approval from the Competition Commission of India (CCI). Additionally, legal approvals must be obtained for the proposed pact or Joint Venture (JV), which will see Nita Ambani as its chairperson and Uday Shankar, the former head of Star Sports, as vice-chairperson.

Anticipating regulatory approval, the transition process may span approximately 10-12 months, maintaining the status quo for the IPL 2024 and the T20 World Cup in June, with Hotstar and Star Sports continuing their coverage of these events.

The earliest potential for noticeable changes could coincide with the Champions Trophy next year. While the WPL, presently available on Jio Cinema and Sports 18, will persist on Jio Cinema, Star Sports may showcase women's matches. It wouldn't be surprising if Star Sports adopts the moniker "Jio Star Sports."

Upon announcing the signing of definitive agreements, the US-based Walt Disney Company outlined plans for a joint venture, incorporating the businesses of Viacom18 and Star India. According to Disney's release, this transaction will entail merging Viacom18's media operations into Star India Private Limited (SIPL) through a court-approved scheme of arrangement.

Importantly, regulatory bodies overseeing cricket properties, such as the Board of Control for Cricket in India (BCCI) and the International Cricket Council (ICC), can be reassured that their partnerships with Jio and Disney Star will only grow stronger across expanded platforms.

 

 

 

Financial Expert Inc.

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