That the Indian broadcast media is headed towards overwhelming market dominance (regulatory endorsements notwithstanding) once the merger of Disney Star and Reliance-controlled Viacom18 has been completed is a given.
The implications of that dominance on the bidding for media rights of the Indian Premier League (and other high profile cricket properties) has been given a value by D&P Advisory, a provider of consulting, advisory, and valuation services.
In a study D&P Advisory released Wednesday – “Beyond 22 Yards 2024 – IPL’s Legacy and WPL’s Vision, an IPL & WPL Valuation Report” – the IPL’s business value has decreased by 11.7% to $9.9 billion in 2024 due to a reassessment of media rights and industry consolidation.
As per the report, the IPL business enterprise value which was Rs 92,500 crore ($11 billion) in 2023 has come down to Rs 82,700 crore ($9.9bn). At the same time, the Women’s Premier League ecosystem value has increased from Rs 1,250 crore ($150 million) in 2023 to Rs 1,350 crore ($160m), marking an 8% rise.
Santosh N, managing partner of D&P Advisory stated, “We anticipate certain demand-side constraints in the next IPL media rights cycle auction due to a decrease in number of potential bidders. Several significant developments from the past year have led us to revise our media rights value estimates.”
The developments are:
*The failed merger between Zee and Sony has impacted market dynamics.
*The merging of Reliance-owned Network18 and Disney-owned Star India has essentially created monopolistic control over television and digital broadcasting.
*The delay in the entry of major tech players such as Amazon, Meta, and Apple into the IPL media rights arena exacerbates the situation.
Looking ahead, the potential dearth of vigorous competition could lead to a more conservative approach in the bidding for IPL media rights. According to Santosh N, “The days of escalating bid prices driven by fierce competition may be behind us, casting a shadow over the future growth trajectory of IPL’s media rights valuation. Despite a substantial growth opportunity for digital platforms, the pivotal question remains: will market forces generate sufficient competition to drive up the per-match value of IPL rights?”
Per the report, the failed merger of Sony-Zee has altered the market dynamics to such an extent that the two entities would struggle to challenge Disney Star/Viacom18. “The combined entity would have been in a stronger position in bidding for the IPL broadcasting rights in the future and would have given a strong competition to Disney and Jio (Viaocom18) to acquire the rights, making it a three-horse race,” the report said.
Digital transformation
“While TV remains more cost effective for consumers, the landscape is evolving. Although IPL matches are free of cost on OTT platforms, the cost per GB of data for streaming is approximately Rs 6. This affordability has democratized internet access across rural and urban areas fostering digital inclusivity and fundamentally changing the content consumption patterns,” the report says.
“OTT services also enrich the viewing experience and supplementary content, from pre-match analyses to behind-the-scenes insights, enhancing viewer engagement beyond live match coverage. These platforms satisfy a deep appetite for in-depth commentary and expert opinions, with nearly 70 percent of fans engaging in pre-match analysis,” the report notes.
WPL on the rise
The WPL, which is only two years old, is witnessing giant strides with the sponsors showing trust in the league. Like the IPL, the major brands have shown their eagerness to engage with the burgeoning brand of women’s cricket. “While stadium capacities have stayed consistent, the number of fans attending the matches has surged by over 50 percentage, reflecting increasing enthusiasm and support for the WPL. This surge in attendance not only underscores the growing popularity of the league among the fans but also enhances its appeal to global brands,” the report said.
MI rank top
As far as franchisee branding rankings are concerned, despite their onfield struggles, Mumbai Indians continue to hold fort. The only franchise to win both the IPL and WPL, the report says the biggest strength of Mumbai Indians is their ability to bounce back from adversity and their talent for discovering and nurturing young talents. Chennai Super Kings, riding on the Dhoni factor, come second followed by Kolkata Knight Riders at third position because of Shahrukh Khan influence. Royal Challengers Bengaluru are in the fourth spot.
