2 days ago
Cricket Rights Costs Challenge India’s Sports Media Business
JioStar spends a lot of money to show sports, especially cricket.
Cricket attracts huge audiences and advertisers in India.
However, the rights to show cricket have become much more expensive.
Advertising income is not growing as quickly as those costs.
This can make sports broadcasting difficult to profit from directly.
Companies may still buy these rights because they help attract subscribers and make advertising more valuable.
Experts suggest using shoppable ads and other new ways to earn money.
They also see sports like kabaddi and football as ways to diversify beyond cricket.
JioStar’s Uday Shankar said sports remains financially challenging despite being a strong investment.
The IPL’s business value reached $20 billion after its 19th season, according to a 2026 valuation study.
IPL media rights sold to Viacom18 and Disney Star in 2022 for more than $6 billion over five years.
Cricket accounts for an estimated 85% of India’s sports media and sponsorship revenues.
Experts recommend hybrid monetisation and greater investment in alternative sports such as kabaddi and football.
- Who
- JioStar, media-rights holders, advertisers and industry experts, including Uday Shankar, Santosh N, Ashish Pherwani and Navin Khemka.
- What
- The article examines the rising cost of cricket media rights and changing ways broadcasters are trying to monetise sports.
- Where
- India’s sports and media market.
- When
- At a recent event; the IPL business valuation cited covers its 19th season, and Disney Star’s current ICC rights deal runs from 2024 to 2027.
- Why
- Cricket rights costs are rising faster than advertising revenues, putting pressure on broadcasters to find new revenue sources and use alternative sports.
Sports Rights as Strategic Investments
Sports Rights as Financial Risks
Value of expensive cricket rights
Sports Rights as Strategic Investments
Broadcasters may accept negative direct returns because cricket attracts subscribers, increases platform value and supports premium advertising rates.
Sports Rights as Financial Risks
Rights buyers can overpay relative to the revenue the content generates on a standalone basis, creating a classic “winner’s curse” situation.
Future monetisation
Sports Rights as Strategic Investments
Programmatic television, interactive commerce, product trials and registrations could create new ways to monetise sports audiences.
Sports Rights as Financial Risks
These models are still nascent and must scale quickly to keep revenue aligned with rising rights fees and advertiser expectations.
Sports portfolio strategy
Sports Rights as Strategic Investments
Alternative sports such as kabaddi and football can provide targeted audiences, diversification, growth and potentially better margins.
Sports Rights as Financial Risks
Cricket continues to dominate India’s sports ecosystem and remains the main instrument for achieving large-scale reach.
Key facts
- IPL business value
- $20 billion, or around Rs 1.97 lakh crore, after its 19th season, according to Houlihan Lokey’s 2026 IPL Brand Valuation Study.
- IPL media rights deal
- Viacom18 and Disney Star acquired five-year IPL rights in 2022 for more than $6 billion, approximately Rs 48,300 crore.
- ICC media rights deal
- Disney Star acquired ICC media rights for 2024-27 for $3.2 billion, approximately Rs 25,000 crore.
- Cricket revenue share
- Cricket accounts for an estimated 85% of sports media and sponsorship revenues.
- Advertising growth
- Advertising revenues are estimated to be growing by around 15-20% annually.
- Recommended approach
- Experts point to hybrid monetisation, including programmatic television, interactive commerce and shoppable live-stream ads.
Quotes
Ashish Pherwani
Partner and media and entertainment sector leader at EY India
“The smarter players do not treat cricket as a pure content P&L. They treat it as a strategic asset that drives subscriber acquisitions and commands premium ad rates.”
financialexpress.com
“Monetisation models are changing, incorporating e-commerce, product or service trials, registrations and other market-facing actions.”
financialexpress.com
