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Jio Cinema likely to grab 60% of IPL 2023 ad revenue, says Media Partner Asia report

MPA, in its report, highlighted that incumbent Star India’s IPL 2023 ad sales is expected in USD 200-220 million range out of a total estimated revenue of USD 550 million

Media and entertainment research, advisory and consulting firm Media Partner Asia (MPA) in its latest report on IPL predicted that the digital ad revenue of the tournament will surpass that of television in 2023.

According to MPA’s report titled “The IPL 2023 Test”, digital will grab ~60% share in the estimated advertising revenue of USD 550 million.

“Our channel checks indicate that total ad investment in IPL 2023 falls within a wide range between USD 490-600 million with MPA analysis of committed spends indicating a total number of USD 550 million,” the report said.

“Mobile supremacy and a CTV strategy will drive Jio Cinema to an estimated USD 330-350 million in ad sales,” the report said.

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.”

MPA in its report highlighted that incumbent Star India’s IPL 2023 ad sales is expected in USD 200-220 million range.

“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 US$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.

Click HERE to read the full report.

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