Disney to cut back on TV, sports biz in India

[Lurie]

Sony will begin its monopoly on sports on telly , if star decides to move its niche property to ott. Star has never been serious about non cricketing properties other than isl and pkl, yet they have audacity to complain about non cricketing properties being loss making.

 

[dino29]

Wait i think Disney will bring some niche sports back on tv incase they reduce investment on cricket during next bidding cycle. It is about maintaining a good return of investment or not having high loss. Currently it is extremely difficult to fix balance hence they r trying to find monetizing options. Sony has built a gr8 non cricket portfolio bcoz of not spending huge on cricket, even when they had IPL they spent far less for 10 yr rights cycle than what star paid for its current 5 yr rights

Future is OTT for all niche properties, its audience base is having strong penetration there and it makes sense to invest on digital rights. Advertisers might also show more interest for these sports on new media front

 

[marvel44]

Wait i think Disney will bring some niche sports back on tv incase they reduce investment on cricket during next bidding cycle. It is about maintaining a good return of investment or not having high loss. Currently it is extremely difficult to fix balance hence they r trying to find monetizing options. Sony has built a gr8 non cricket portfolio bcoz of not spending huge on cricket, even when they had IPL they spent far less for 10 yr rights cycle than what star paid for its current 5 yr rights

As I have said repeatedly, Star haven't purchased IPL by a lot, seriously go through the stats. Sony had bid 11500 crores just for TV rights in India and Facebook had bid 3100 crores only for Digital in India. Together they wound bidding for 14600 crores only for Indian rights. Star had got whole global rights for 16300 crores. That's not a huge thing as Star was gunning on marketing Hotstar on the heels of IPL. And Live Sports rights increasing exponentially be it Cricket or Football or others in their countries of Origins. Take NFL or NBA for example, ESPN/Disney had to pay premium than the last cycle for Rights, same goes with FOX,CBS,NBC as well. Also NFL is loss maker for Fox as well. U cannot compare a decade back rates for evaluating the future cycle rates. Next cycle IPL will cross the threshold of what Star had bidded for this cycle. If its a open auction its gonna be suicidal for broadcasters as they will gunning to secure the rights. We have seen how BCCI rights e-auction panned out.

Edit: got FB's quote wrong it's actually 3900 crores, making Indian rights only costing 15000 crores

 

[RdX]

Sony will begin its monopoly on sports on telly , if star decides to move its niche property to ott. Star has never been serious about non cricketing properties other than isl and pkl, yet they have audacity to complain about non cricketing properties being loss making.

Except Cricket, All other Sports Properties Not profitable in India, I don't know how Sony Recovering Acquisition Cost of these Sports Properties.

 

[Raju lal]

As I have said repeatedly, Star haven't purchased IPL by a lot, seriously go through the stats. Sony had bid 11500 crores just for TV rights in India and Facebook had bid 3100 crores only for Digital in India. Together they wound bidding for 14600 crores only for Indian rights. Star had got whole global rights for 15100 crores. That's not a huge thing as Star was gunning on marketing Hotstar on the heels of IPL. And Live Sports rights increasing exponentially be it Cricket or Football or others in their countries of Origins. Take NFL or NBA for example, ESPN/Disney had to pay premium than the last cycle for Rights, same goes with FOX,CBS,NBC as well. Also NFL is loss maker for Fox as well. U cannot compare a decade back rates for evaluating the future cycle rates. Next cycle IPL will cross the threshold of what Star had bidded for this cycle. If its a open auction its gonna be suicidal for broadcasters as they will gunning to secure the rights. We have seen how BCCI rights e-auction panned out.

Even so I am very doubtful how Star able to recover the amount they paid for IPL rights. They spend around 16000+ crores ie 3200+ cr per year. Their ad revenue stands around only 2000crs. Even though they could break even target in the upcoming seasons, the loss of previous seasons are left.

 

[KAR]

This means English GEC will be left with CC and CI . Hope Viacom doesn't do like Disney and rather launch Showtime or CBS

I don't think CBS will ever comeback, although Showtime can. But i feel people are changing way to watch English TV Shows in india. In USA the majority speaks English Language,they produce content in that language, but here it's totally different. People wants to watch the content in their own language. Sooner or later every network will exit English Entertainment Market in india.

 

[marvel44]

Even so I am very doubtful how Star able to recover the amount they paid for IPL rights. They spend around 16000+ crores ie 3200+ cr per year. Their ad revenue stands around only 2000crs. Even though they could break even target in the upcoming seasons, the loss of previous seasons are left.

Yeah that I agree, But assuming Star paid a lot is wrong is what I'm saying. As whole rights were added upto 15800 crores, and Star's global bid is 16300 crores. The margin of bid is very close not like Star has lost their mind and bid out 2-3k crores more than the margin.

For everyone's reference how the auction panned out.

Star won them all by making one consolidated global bid (INR 16,347.5 crore) - the only bidder to do so - that was larger than the sum of all the highest bids for each category (INR 15,819.51 crore).

Star wins IPL rights for US $2.55 billion

 

[Raju lal]

Yeah that I agree, But assuming Star paid a lot is wrong is what I'm saying. As whole rights were added upto 15800 crores, and Star's global bid is 16300 crores. The margin of bid is very close not like Star has lost their mind and bid out 2-3k crores more than the margin.

For everyone's reference how the auction panned out.


Star wins IPL rights for US $2.55 billion

So if Sony wins IPL TV rights for 11500crs, it will be harder than Star for them to recover the amount just from TV. While their last(season 10) revenue stands at 1000crs, and their penetration in regional languages are smaller than Star.

 

[RdX]

Even so I am very doubtful how Star able to recover the amount they paid for IPL rights. They spend around 16000+ crores ie 3200+ cr per year. Their ad revenue stands around only 2000crs. Even though they could break even target in the upcoming seasons, the loss of previous seasons are left.

it's very difficult to Recover IPL, ICC, BCCI media rights Acquisition Cost, Star Sports have Both Profit and Loss every year, But Star Sports Network Revenue Every year touch 5000crs from Cricket Properties only and besides Sony Struggling to Recover other Sports Properties Acquisition Cost, If they Neglect Cricket Rights, then Sony situation will be like Neo Sports, So they should Acquire more Cricket Rights to stay safe in Sports market.

 

[Rajpatil98]

Even so I am very doubtful how Star able to recover the amount they paid for IPL rights. They spend around 16000+ crores ie 3200+ cr per year. Their ad revenue stands around only 2000crs. Even though they could break even target in the upcoming seasons, the loss of previous seasons are left.

This is 2000cr ad revenue is only from tv .....they still have not revealed ad revenue of digital plus how much they got subscription revenue from both tv and hotstar only because of ipl
As far as iknw once uday shankar said that they got 60% from ad revenue and 40% from subscription revenue for any property like ipl,bb,or tv show
So if they 2000cr means 60% from ad revenue then what abt other 40% which they got from subscription revenue
They are definitely making profits from ipl but not getting expected profits