Although many might think that Disney-Star made a huge mistake by not putting in more efforts to acquire BCCI cricket rights and which will lead to them losing subscriber base for their sports channels on TV and Disney+Hotstar OTT platform but actually this is not the correct assessment.
1stly we know Disney is lot more cautious in not over spending for sports rights as not only investments r too high but broadcaster has to wait for very long time to recover expenditures or may earn some profit.....most importantly in current sports broadcasting landscape when Jio is offering sports content for free on its OTT App then it has further put pressure on rivals to adopt same strategy to help attract more viewers and earn more ad revenue but remember there is a huge loss which this causes as far as subscription revenue is concerned. So in all dip or increase in subscriber numbers loses much significance
Sports particularly India Cricket brings majority of the subscription revenue for OTT platforms so i feel disney star made right decision by not investing such huge money on buying Digital Rights of BCCI cricket when when return on investment may not be that attractive.
Now coming to TV rights, again as we have seen price of the same is extremely high and current situation where there is so much cricket played by Indian Team and generally cricket matches as a whole there is surely drop in interest of viewers to watch the same thus it impacts ratings and hence brands either spend less on buying ad slots or completely avoid the same for many series. T20 seems to garner more interest from advertisers but here too i feel much of their budget is reserved for IPL . I have myself noticed in various BCCI Matches and even IPL that at numerous occasions Star Sports had no ads to air. So overall again when previously it was tough to recover investment then now paying further more does not seem to be a right decision from business/financial perspective.
Disney-Star should take the similar route as Airtel took in telecom space while Jio was launched and freebies / offers were given to customers by them. This means instead of losing out on cash have a plan to invest where necessary and keep pricing which is appropriate, later as initial huge freebies run by Jio gets gradually reduced then re-enter the arena to bid for key India Cricket rights as at that point there won't be unnecessary overpricing or anyone willing to pay exorbitant price for acquiring rights.
Disney-Star can use money saved to acquire rights of various other sports as now the pressure to show cricket on most channels to recover would be slightly lowered and there will be more legroom to allocate funds + airtime to variety of sports. Similarly expansion of content offerings can be done across genres be it on Linear/TV or their OTT Platform
1stly we know Disney is lot more cautious in not over spending for sports rights as not only investments r too high but broadcaster has to wait for very long time to recover expenditures or may earn some profit.....most importantly in current sports broadcasting landscape when Jio is offering sports content for free on its OTT App then it has further put pressure on rivals to adopt same strategy to help attract more viewers and earn more ad revenue but remember there is a huge loss which this causes as far as subscription revenue is concerned. So in all dip or increase in subscriber numbers loses much significance
Sports particularly India Cricket brings majority of the subscription revenue for OTT platforms so i feel disney star made right decision by not investing such huge money on buying Digital Rights of BCCI cricket when when return on investment may not be that attractive.
Now coming to TV rights, again as we have seen price of the same is extremely high and current situation where there is so much cricket played by Indian Team and generally cricket matches as a whole there is surely drop in interest of viewers to watch the same thus it impacts ratings and hence brands either spend less on buying ad slots or completely avoid the same for many series. T20 seems to garner more interest from advertisers but here too i feel much of their budget is reserved for IPL . I have myself noticed in various BCCI Matches and even IPL that at numerous occasions Star Sports had no ads to air. So overall again when previously it was tough to recover investment then now paying further more does not seem to be a right decision from business/financial perspective.
Disney-Star should take the similar route as Airtel took in telecom space while Jio was launched and freebies / offers were given to customers by them. This means instead of losing out on cash have a plan to invest where necessary and keep pricing which is appropriate, later as initial huge freebies run by Jio gets gradually reduced then re-enter the arena to bid for key India Cricket rights as at that point there won't be unnecessary overpricing or anyone willing to pay exorbitant price for acquiring rights.
Disney-Star can use money saved to acquire rights of various other sports as now the pressure to show cricket on most channels to recover would be slightly lowered and there will be more legroom to allocate funds + airtime to variety of sports. Similarly expansion of content offerings can be done across genres be it on Linear/TV or their OTT Platform
Other than IPL(20k cr), other rights are below 5k cr. King Kohli will play another 3 years for IPL, Tests and ODIs.
lengthy matters but A prefect data from your side.
