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Business News>Industry>Media/Entertainment>Media>Star Sports not letting Reliance get ‘free hit’ in intergalactic IPL viewership war
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The IPL battle is set to get intense this year as we await a crucial galactic battle for IPL viewership between giants Star Sports and Reliance owned JioCinema, which will stream the matches online for free in 4K resolution on its OTT platform. Star Sports is not left out and has stepped up its marketing efforts to convince viewers why IPL is best enjoyed on TV. This off-field battle is not only relevant for the moment, but also provides enough signals about future viewers.
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For many Indians it is eat, sleep and breathe. Enthusiasm abounds in the Indian Premier League, cricket’s richest franchise and one of the most watched sporting events in the world. According to brand valuation consultancy Brand Finance, IPL saw its brand value almost double to $8.4 billion last year.
Considered as the Super Bowl of India, IPL is enjoyed almost like a festival in summer in India. This tournament is the golden goose as well as the battleground for brands, advertisers and of course broadcasters.
The battle is set to intensify this year as we await a decisive galactic war for IPL viewership between giants Star Sports and Reliance-owned JioCinema, which will stream the matches for free in 4K resolution on its OTT platform. This off-field battle is not only relevant for the moment, but also provides enough signals about future viewers.
Reliance won the majority of the IPL broadcast rights (for 2023-2027) by acquiring package B (digital rights for the Indian subcontinent) and C (non-exclusive digital rights for 98 matches over five seasons in the Indian subcontinent) for a total of Rs 23.758 million.
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Many believe that India’s richest man Mukesh Ambani’s move to grab OTT rights is something beyond what meets the eye.
After paying billions of dollars, Reliance also launched a “whole” offering of streaming matches on OTT for free. Some analysts and experts see Ambani as building something that will bring long-term results. The move is expected to strengthen its telecommunications business through data usage, for example.
Moreover, Jio Platforms, Ambani’s mobile internet startup, is keen to attack Dalal Street soon and at a time when business tycoon Gautam Adani’s rival is distracted by a share reduction following allegations of forced Hindenburg manipulation.
Disney+ Hotstar reported a 6% drop in paid subscribers between October and December. Some have attributed the decline in paid subscribers to the lack of streaming rights route for IPL.
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However, anonymous industry sources said the drop in subscribers is due to Disney+ Hotstar subscribers switching to Disney+ in certain markets.
Star Sports is not left out and has stepped up its marketing efforts to convince viewers why IPL is best enjoyed on TV.
“Star Sports’ new campaign (that IPL is better on TV) is a prescient move to maintain its dominance,” said Swarup Gupta, head and head of financial services, ESG Rating Services. TV for both advertisers and broadcasters. in the Economist Intelligence Unit.
“In India, sports remain a common viewing experience and the penetration, expertise and experience of broadcasters remains unimpeded. Cord-cutters, on the other hand, refuse to allow viewers to broadcast television on streaming services, which only 0 .2% of all television. some estimates,” he added.
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According to YouGov, 83% of viewers like to watch sports on TV. The Broadcast Audience Research Council noted that the 2022 Asian Cup had a 12% increase in television ratings. The India-Australia T20I series delivered 36% more viewers than the previous peak in 2019 and was the highest-rated bilateral T20I series in the last five years. The India-South Africa series rated 47% higher than the previous series in June 2022. The recently concluded India-Sri Lanka and India-New Zealand ratings also increased by 63%.
TV sports viewership grew 11% in 2022, with 758 million viewers watching sports on linear TV. The entire linear television universe rises to 900 million and is said to have a lot of room to grow.
Star Sports is banking on data and has stepped up its promotional push, launching a 360-degree marketing campaign in every corner of the country leading up to the IPL.
The company said it will make every effort to ensure that more people have access to Star Sports. To attract the growing premium HD audience and fill the gap in HD vehicles for sports viewers in the South Indian market, Star Sports will launch two premium HD sports channels – Star Sports Tamil HD and Star Sports Telugu HD.
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“We will have over 100 commentators and will be looking to engage viewers in a much bigger way. We will focus on building and engaging the community as well as creating content around IPL for other groups ranging from students and sports academies to young mothers on one hand,” the company told ET Online.
Star Sports said it will telecast the IPL on more than 22 channels with more than 10 feeds. “Disney Star Network, which has a market share of over 30%, will use the power of the network to make this the biggest IPL ever on TV. It will be the biggest IPL broadcast coverage ever with the widest number of channels,” said it.
Television is the preferred medium for brands to leverage to reach the high IPL viewership on television. The company said that IPL on TV is a place for brand building, no one wants to miss it.
According to industry sources, Star Sports has set a target of reaching 500 million viewers through IPL this year, which is higher than the around 400 million achieved by the network in previous editions.
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“While the last few months of live cricket on Star Sports have been anything but normal, we have seen very positive engagement from various clients across categories advertising with us. expect a positive response,” said the broadcaster.
There are over 100 advertisers on TV every year and 75% of Indian B2C startups have used IPL on TV to become unicorns. IPL leads in advertising spend across properties and media platforms available to advertisers. It has always been a catalyst to promote the economy.
“Summer is also the time when brands across categories become active advertisers and no other platform can give brands the scale that IPL does on television,” Star Sports said.
Star Sports also believes that this edition of IPL will attract greater interest than in previous years, making it easier for broadcasters to pursue growth targets.
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This cricket-rich tournament is taking place after a gap of one year, which has not happened in the last three years. The resumption of matches played at home after three years ensures that the local markets in the host cities of the tournament ignite the enthusiasm of the spectators.
Some experts and analysts believe that Reliance will not pose a threat to Star Sports or any broadcaster in the near to medium term as the majority of viewers are sitting in front of their televisions.
“I don’t see people watching IPL matches on their phones while sitting at home. It will be more convenient when you travel. Most of the match is watched at home on TV because you need a screen more big picture when you look at sports as content,” said Karan Taurani, senior vice president and media analyst at Elara Capital.
“So I think sports is a very strong proposition on TV. I don’t see OTT as a big threat to wider TV revenues in the near future, at least because of the penetration of low 4K and second of course is intelligence. TV Figures are very low to support this type of argument. And finally, the number of broadband penetration is also around 15-16% in our country,” he added.
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Industry reports by EY-FICCI and Affle have confirmed that smartphone penetration in India is close to 460 million, just half of TV penetration in India.
Data costs are another important factor that is likely to reduce interest in watching matches on OTT.
Jio Media Cable allows people to connect their phone to a TV to turn it into a Smart TV. However, the data required to stream a 3.5-hour match typically with Jio Cable varies from 3.6 GB per match for SD line to over 26 GB per match for 4K transmission.
Considering that the cost per GB determined by TRAI is around Rs 10, the cost of streaming just 10 IPL games using Jio Media Cable would be in the range of Rs 360 – Rs 2,600.
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