Zee-Sony merger saga ends: Media buyers react to mega merger’s termination

The two year long Zee-Sony merger saga concluded on January 22 with Sony calling off the deal and ending speculations of a duopoly in the market. In fact media buyers and experts are happy that advertisers will continue to have a diverse channel portfolio to choose from.

Industry experts referred to the potential duopoly arising from the Zee-Sony merger and the speculated Viacom18 and Disney Star merger. This scenario could establish two dominant market forces, presenting challenges for advertisers in terms of limited choices.

“While stock markets were anticipating this merger, for media buyers the deal going through wouldn’t have been an exciting prospect,” said a Mumbai based media buyer on conditions of anonymity.

“While the independent companies might be facing challenges from the fallout for advertisers and media planners it will be business as usual. In fact avoiding a duopoly will benefit advertisers,” they added.

The fallout, according to experts, creates increased options and healthy competition.

“Having a fragmented market with multiple players is advantageous for advertisers in terms of negotiating power and buying leverage. Consolidation, be it between Disney and Viacom or Sony and Zee, could create a seller's market, limiting options for buyers,” said another media buyer.

However, from a viewer's perspective, a merged entity might have brought innovative content and investment, they said.

“Yet, for us advertisers, a competitive market is preferable as it allows us to leverage one against the other,” they added.

Ashish Bhasin, founder of The Bhasin Consulting Group and former Dentsu APAC CEO sees the fallout as a missed opportunity.

“In this era of media consolidation, the opportunity for Zee and Sony to join forces could have been advantageous. Combining their strengths would have created a formidable competitor. With Zee and Sony’s diverse content portfolio, including regional and global offerings, it would have positioned them well against emerging strong competitors. However, despite the current setback, both companies, being seasoned players, are likely to navigate through challenges with their experienced leadership,” Bhasin said.