Expect Viacom18 to take initiatives that could give added thrust to digital shift in live sports viewing: GroupM

With IPL media rights divided into two parts – television rights with Disney Star and digital rights with JioCinema, 2023 is expected to be a tipping point in Indian cricket with a host of rights coming up for grabs, according to GroupM ESP Sporting Nation report.

Viacom18 is expected to take initiatives that could give an added thrust to the digital shift in live sports viewing, the report stated.

While 2020 saw the industry in a phase of crisis management to keep the events going, and the next year set the stage for a return to an air of positivity, what we saw in 2022 was a disproportionate uptrend, which in numerical terms, implied that we have covered up for some of the speed that was compromised in the meantime.

Sports Sponsorship saw significant growth and provided maximum incremental value, while Endorsement and Media Spends also played key roles in the surge. These three revenue streams combined effectively to deliver an industry total of Rs 14,209 crore, as the growth curve got even steeper.

Over the years, cricket has played the role of the linchpin of Indian Sports in the commercialisation journey, by becoming the biggest contributor in terms of value, by a huge margin. In 2022, this sport contributed to 85% of the total revenue in the industry, and in conformity with the trends, there was heavy scoring from international as well as franchise cricket.

The real big hit of the year came from the IPL, which added two new franchises, leading to an unmistakable impact on the growth curve which was directly felt in the areas of Sponsorship and Franchise Fee.

Football saw higher ball possession among Indian fans with the FIFA World Cup bringing in a thrilling passage of play, to add to an already exciting set of options for us, which included European events as well as our own properties like the ISL.

For many events that had to bear the brunt of the COVID-19 menace in the past two years, 2022 marked a year of recovery. The PKL was back this year and was welcomed by Kabaddi fans, while we also saw the return of the leading Marathons in India hosted by our major cities like Mumbai, Delhi, Bengaluru and Kolkata.

“TV continues to be the largest medium for access to sports content and in terms of ad spends too, though we are in the midst of some over-the-top hitting by OTT streaming, which is gaining acceptance at a fast scoring rate, as an alternate option in many cases, and as the medium of choice too, for some,” the report said.

We are headed to a scenario where consumers can watch content at a time that suits their convenience. As more and more entertainment programmes will be watched as per this trend, live sports will continue to be a flag-bearer for the habit of appointment viewing. This is expected to work in favour of the sports industry, and the resultant upswing will be seen in sponsorship and media spends by brands, in coming years.

“As the industry evolves further, we can expect brands to invest more in sports, come up with innovative ideas to leverage the associations they create, and enjoy the business upsides that go with it, leading to a virtuous cycle that will catapult the industry to greater heights,” the report stated.

Cricket will continue to be the top-scorer, with the highest reach and fan-following, by generating significantly higher deal values than Emerging Sports. Participative sports like Marathon and Golf will be gaining momentum if 2022 is any indication to go by.

“As the Indian society keeps pace with the changing times, we are witnessing an upward trend in the number of female athletes who are coming up the ranks and representing the country on the world stage across varied sports disciplines,” the report further read.

2023 is expected to be a tipping point in Indian cricket with a host of rights coming up for grabs, and prices are likely to shoot up.  The entry of Viacom18 has changed the dynamics in sports media, with the Reliance-backed conglomerate winning the digital rights at a bid value of Rs 20500 crore.

Additionally, they bagged the digital rights for 18 more non-exclusive marquee games per season at a value of Rs 3257.52 crore.

Viacom 18 is expected to take initiatives that could give an added thrust to the digital shift in live sports viewing. Disney Star, in the meanwhile, has retained its sub-continent legacy rights at a figure of Rs 23,575 crore.

While the IPL is all set for an upswing, BCCI’s Home Series will be taking the sector to dizzying heights with the Title and Central Sponsorships, as well as the Media Rights, getting renewed.

Moving on from cricket, in another fresh beginning for Emerging Sports, two major international racing events, Formula E and Moto GP, will be held in India for the first time, as we speed up on the track of growth.

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