In the previous year, a fierce battle unfolded to secure the television and digital rights for the IPL. From 2018 to 2022, both rights were held by Disney Star. However, for the next five-year period (2023-2027), the rights were split between Viacom18, an entity owned by Reliance Industries, winning the digital piece, while Disney Star retained the television rights. Viacom18 disrupted the status quo by offering free digital streaming through JioCinema, its over-the-top (OTT) platform.
The Indian Premier League (IPL), known for its massive viewership numbers, continued its trend of breaking records this year. However, a significant difference in the latest edition was the availability of free digital streaming, eliminating the need for a subscription fee. Viewers simply had to download the JioCinema app on any device to enjoy live coverage of the marquee cricket tournament.
Anil Jayaraj, CEO of Viacom18 Sports, clarified in an interaction with Business Today that there are no plans to introduce a subscription fee for sports content on JioCinema. This decision eliminates potential subscription revenue and places considerable reliance on advertising. Jayaraj expressed confidence in the digital advertising market during the IPL season, believing there is still significant untapped potential. He noted that the democratization of advertisers is an emerging trend with promising prospects.
The projected numbers for digital advertising provide encouragement for Viacom18. According to a report by FICCI-EY on the media and entertainment sector released in April, digital media revenue for this year is estimated to reach Rs 67,100 crore, compared to Rs 57,100 crore the previous year. The report further forecasts a revenue of Rs 86,200 crore for 2025, representing a compound annual growth rate of 14.7% between 2022 and 2025.
The decision to offer free digital streaming on JioCinema reflects Viacom18’s strategic approach to capturing a wider audience and maximizing advertising opportunities. By removing the barrier of a subscription fee, the company aims to attract more viewers to its platform and leverage the growing digital advertising market.
The IPL’s popularity and mass appeal make it an attractive platform for advertisers to connect with a diverse and engaged audience. With the digital medium experiencing significant growth, advertisers have recognized its potential to reach a wider demographic and enhance brand visibility. The shift towards digital platforms and the increasing adoption of OTT services present new avenues for advertisers to explore innovative and targeted marketing strategies.
While the decision to forgo subscription revenue may seem unconventional, Viacom18’s focus on digital advertising revenue reflects its confidence in the market’s potential. By capitalizing on the IPL’s immense popularity and offering free access to live matches, the company aims to create a more inclusive viewing experience while positioning itself as a leader in the digital sports streaming landscape.
It is essential to note that the media and entertainment industry is dynamic and subject to rapid changes. Companies must continuously evaluate market trends, consumer preferences, and revenue models to stay competitive and adapt to evolving dynamics.
In conclusion, the Indian Premier League (IPL) has once again shattered viewership records, this time with the added allure of free digital streaming on JioCinema. Viacom18’s decision to offer free access to the tournament on its OTT platform reflects a strategic shift towards digital advertising revenue. By capitalizing on the IPL’s popularity and leveraging the growing digital advertising market, Viacom18 aims to create a more inclusive viewing experience and position itself as a prominent player in the industry. As the digital media sector continues to expand, opportunities for advertisers are expected to grow, fueling the industry’s upward trajectory.
