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Disney Star to pocket between Rs 2,000-2200 crore from ad revenue this World Cup: Elara

Elara Capital expects a 6% CAGR versus the prior edition of the CWC in CY19 in terms of TV advertising. For the digital medium, CAGR may touch 21% versus 2019 levels

The official broadcast and digital media rights holder of World Cup 2023, Disney Star, is expected to rake in approximately Rs 2,000-2200 crore this season, as per Elara Capital estimates.

The report further mentioned that it expects a 6% CAGR versus the prior edition of the CWC in CY19 in terms of TV advertising. For the digital medium, CAGR may touch 21% versus 2019 levels.

India is hosting the Cricket World Cup (CWC) after 12 years from October 5 to November 19, 2023. For the first time, India will host all the matches solo. Earlier, other Asian nations co-hosted with India.

According to Karan Taurani, SVP- Research Analyst (Media, Consumer Discretionary and Internet), Elara Capital, the favourable timings (matches will begin at 10:30 IST/14:00 IST) may boost consumption of the property on TV/digital platforms.

“The digital revenues for CWC may prop significantly this year as the timings are favourable (viewers may watch the first half of the match on OTT) and CWC will be available free for all mobile users on the Disney+ Hotstar app,” he said.

In an earlier interview, Ajit Varghese, Head of Network Ad Sales at Disney Star, said that Disney Star aims to have a 70-80% share in the brands’ budgets this festive season and has made its sales strategy more lucrative for brands ahead of the 2023 Asia Cup and World Cup.

Varghese told BestMediaInfo.com, “Disney Star is selling ad spots on mobile at similar CPM rates to UGC platforms, made mobile free to view, launched a self-serve platform and opened up more targeting options to ensure brands across arena can be part of cricket buzz as the festive season approaches.”

Below are some more highlights from the report on World Cup 2023:

TV advertising (non-cricket) may be strained

In the past year, many consumer tech companies (edtech, fintech, foodtech and e-commerce) have shifted focus to profitability, thus curtailing ad spends. This has hurt the market as regards ad spend growth on TV/digital.

The Elara Capital report mentioned that these verticals have not yet made a come-back in terms of larger ad budgets, and the market is depending on larger, traditional verticals such as FMCG, Auto and Telecom.

“Expect TV ad spends for GEC-based players – Zee Entertainment Enterprises (Z IN) and Sun TV (SUNTV IN) – to see a mild strain in Q3FY24, due to spends being diverted to cricket. But the positive impact from the festival season may largely offset this hit. The mix of advertisers has also changed – from new-age plays to traditional verticals – which has hit the overall pricing (sports and GEC),” as per Taurani.

Consumer discretionary – Win-win proposition

The CWC may positively impact online food ordering for aggregators such as Zomato/Swiggy.

Through 2019 and prior world cups, JUBI alone saw a boost in SSSG (higher SSSG growth of ~3% in the CWC quarter) due to the best experience offered in food delivery. But this time, expect other categories – burgers, fried chicken and biryani – to perform well, led by higher penetration of online aggregators, and likely replication of JUBI’s delivery experience. Also, pizza may see significant demand (preferred by large groups). However, the segment is highly fragmented with many competitors in the fray, which may dampen prospects of a big delta/advantage for JUBI in this CWC.

QSR/food tech companies may see a positive impact of 6-8% (2%-3% higher quarterly growth in Q3FY24) from higher orders during the CWC (six weeks).

The alcobev industry may see a boost in consumption as beer volumes have an on-premise share of ~30% – Premium beer such as Corona, Heineken, Bira and Budweiser could see strong growth. Within spirits, scotch whiskey and upper prestige could see a boost in volume growth due to higher on-premise share (~40%).

“We estimate a positive impact of 4%/6% (1.5%-2% higher quarterly growth in Q3FY24) for overall whiskey/beer volumes in October-November due to the CWC. Bars/pubs may see better occupancy, which may positively impact alcobev volume growth in Q3FY24,” said Taurani.


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