MUMBAI: Total video revenues related to sports in India will reach $1.2 billion by 2024 with total rights costs rising to $1.3 billion, according to a new report published recently by Media Partners Asia (MPA).
MPA projections indicate sports rights costs across 11 Asia Pacific markets as a whole will grow 3.8% CAGR between 2019-24 to reach $6.6 billion by 2024 while sports revenues in TV & online video will grow at a 6.7% CAGR to reach $7.2 billion by 2024.
According to the ASIA PACIFIC SPORTS MEDIA 2020 report, sports media rights in India, for which Cricket commands 87% of the total market value, has headroom for growth. While TV remains the core driver, the implementation of a new pay-TV tariff order by regulator TRAI could limit value & growth in non-Cricket sports. Online video accounted for an estimated 20% share of the sports rights pie in 2019 and will become increasingly significant in the future, growing its share to 40% by 2024.
Sports monetization on TV, as well as digital, will be robust, driven by a number of factors: (1) India adding over 16 million new pay-TV homes and 250 million broadband subscribers over 2019-2024; (2) Improved sports content delivery and innovation; and (3) Incumbents across broadcast, online video and telco sectors will continue to place a premium on marquee sports rights.
Key sport consumption drivers as per the report: (1) Young demographic with better propensity to pay; (2) Increase in grassroots investments and improvement of on-ground infrastructure, particularly for non-cricket sports; and (3) Growth in broadband penetration and speeds.
Key challenges for the sports industry: (1) Low monetization from domestic non-cricket leagues; and (2) Perception that limited opportunities exist to pursue a career in sports, outside cricket.
Related Report
2019-24 sports media revenues to grow at 6.7% CAGR: Study
