Uday Shankar, the vice chairman of the newly formed Indian media behemoth JioStar, which holds the TV and digital rights for IPL and ICC events, has given the clearest indication that the days of “loss leader” bidding for prime sports (read cricket) properties are numbered.
Speaking to Business Today, Shankar said, “Sports bodies worldwide have thrived on the passionate loyalty of sports fans, leveraging the fear of missing out (FOMO) among media companies. We no longer suffer from FOMO. If we decide not to bid for the next cycle of ICC rights, we can sit it out without impacting our business.”
Shankar remains cautiously optimistic that the skyrocketing valuations for cricket rights might stabilise over time. However, he acknowledged the unpredictability of the bidding process.
“Every time I’ve participated in a bidding war, I’ve hoped sanity would prevail. Yet, every cycle brings a few ‘drunk sailors’ who drive prices higher,” he said on a lighter note. “I hope the market will correct itself, but cricket and other rights have become increasingly expensive.”
In the interview, he emphasised the flexibility provided by their diverse content portfolio, which includes drama, movies, reality shows, and cricket. “We don’t have to be desperate to bid for every single right,” he added.
While IPL remains a crown jewel, Shankar acknowledged the financial strain associated with acquiring high-value cricket rights, particularly for ICC tournaments.
“There are substantial financial obligations tied to cricket rights,” Shankar said. “We must address this by growing the market and innovating in advertising and monetisation. We are committed to these rights and will continue to service them, no matter the cost (emphasis our).”
The recent scrutiny by the Competition Commission of India (CCI) over the consolidation of broadcast rights for major cricketing tournaments under BCCI and ICC with JioStar has sparked considerable discussion.
Shankar remarked that “dominance in sports is highly overrated”, adding that criticism of Disney and Reliance’s hold over these rights was “somewhat uninformed”. He pointed out that sports rights in India are typically awarded for a “frighteningly short period — anything from three to five years”.
Despite the clear and present reality of JioStar’s media dominance, Shankar acknowledges that competition remains a constant, stressing the importance of evolving the definition of the market.
He explained, “One of the mistakes we often make is sticking to the traditional definition of the market, even though it has evolved. Traditional media companies are not just competing among themselves for viewership and monetisation; an increasing number of external players are entering the space, adding more pressure.”
In other interviews with Bloomberg and Financial Times, Shankar emphasised the focus on digital innovation, stating, “There is this whole narrative that television is dead and it’s all about streaming. Television in this country for sure is not dead.”
He emphasised the enduring relevance of TV alongside the burgeoning digital landscape, suggesting a hybrid strategy for content distribution.
“India is one of the few markets where television still has reasonably good health. Within that, a lot is changing,” Shankar noted.
