On March 31, the IPL 2023 is scheduled to begin with a bang. The craze among cricket fans is obvious as the IPL draws closer. In its most recent analysis of the IPL, Media Partner Asia (MPA), a media and entertainment research, advising, and consultancy business made the prediction that in 2023, the tournament’s digital ad income will surpass that of television.
The MPA report “The IPL 2023 Test” predicts that 60% of the anticipated advertising revenue would come from digital sources.
IPL 2023’s total advertising-income is expected to be USD 550 million.
According to the report, JioCinema is predicted to generate ad sales revenue of between USD 330-350 million (2,800 cr, approx), which is higher than the IPL’s TV rights holder Star India, whose earnings are estimated to be between USD 200-220 million (1,800 cr, approx).
According to the research, the USD 550 million revenue across digital and pay-TV is relatively unchanged year on year and marks a significant loss compared to annualised 2023-27 IPL rights prices of USD 1.2 billion.
Jio Cinema has roped in 500 advertisers for IPL 2023
Explaining the estimated revenue for Jio Cinema, MPA said, “In total, Jio Cinema has roped in 500 advertisers for the 2023 IPL. Conquering CTV will be a challenge given distributor fragmentation and a significant level of customization required. MPA estimates the total CTV TAM in India at 70 million. We forecast that Jio Cinema IPL 2023 penetration of this base will reach 20-30 million, driving CPMs and enhancing the consumer bond with multi-camera angles, 12 languages, 4K resolution, live statistics and more.”
The absence of IPL can scale down Star India
It is likely that Star India will reduce its investments in light of the rising difficulties related to the income and cost dynamics of linear TV for sports. Hotstar and Disney+ are both losing viewers. Its customers’ value will be severely reduced as a result of the lack of the IPL, the collapse of its agreement with Jio, tightened entertainment expenditures, and its recent decision to stop carrying high-profile HBO content.
Disney+ Hotstar is facing growing challenges due to the probable loss of up to 15 million paying subscribers by the end of 2023, despite some attractive programming scheduled for the second half of 2023, including the Asia Cup and the ICC ODI World Cup.
In its report, MPA noted that IPL 2023 ad sales for the incumbent Star India are anticipated to be in the range of USD 200-220 million.
“IPL incumbent rights holder Star has struggle to withstand Jio’s onslaught as well as a challenging macroeconomic environment. As a result, pay-TV ad sales will more than halve YoY to USD 200-220 million. for the IPL 2023 edition with a downside case stretching to below USD 200 million, according to our discussions with agencies,” Media Partners Asia said.
“Subscription fees, always regarded as an allocation, have historically been in the USD 120-150 million. range but are expected to be significantly impacted in 2023, because of the impact of NTO regulations, noisy disputes with Reliance-owned cable MSOs over Star Sports channel fee increases and additional complications over Star’s decision to broadcast 12 important IPL matches over its FTA channel Star Utsav,” it added.
IPL: JioCinema likely to charge subscription fees
JioCinema would probably use annual passes and dynamic pricing to collect subscription fees for IPL 2024. In the meanwhile, the business plans to provide SVOD in the second half of 2023, drawing on alliances with Paramount+, Viacom18’s premium local content (including fresh originals), and fresh materials from possible collaborators including Warner Bros.
Discovery (WBD), which owns HBO, and NBCU. By June of this year, it is also anticipated that JioCinema and Voot, which had 6 million users at the end of 2022, will unite and integrate their platforms.
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