Disney, Sony deals may make it harder to reach India’s consumers
media deals in India are giving the likes of Unilever Plc and Procter & Gamble Co. a reason to worry: If entertainment goes the way of telecom and ends up effectively as a duopoly, will it become costlier for large consumer brands to reach 1.4 billion people?
The first of these two transactions may come as early as Monday and would see Walt Disney Co. enter into a non-bidding agreement with Mukesh Ambani to merge their media businesses in the country.
The richest Asian tycoon will hold at least 51% of the combined television and streaming operations.
The second, which is looking half-baked even after being in the oven for more than two years, is expected to meld Sony Group Corp.’s local unit with Zee Entertainment Enterprises Ltd. But disagreements have reportedly cropped up about who should be the chief executive officer.
Although the Sony-Zee accord is mired in doubt ahead of its tight Dec. 21 deadline, it’s reasonably certain that by this time next year the Indian sports and general entertainment market will have consolidated into two large platforms: Ambani’s Viacom18 Media+Disney, and Sony, with or without the Zee merger.
India is a large cable market. For advertisers, TV ads are still five to six times more expensive than their digital alternatives, according to industry professionals.
