And the proportion of subscription fees that Star attributes to its IPL business is also expected to be “significantly impacted in 2023,” MPA says. MPA forecasts that Star’s pay-TV ad sales will be more than halved for the IPL 2023 edition, compared with 2022, when they weighed in at $442 million. Those factors are expected to be damaging for Disney in India. The merger and platform integration between Jio Cinema and small SVOD streamer Voot, which had 6 million subscribers at the end of 2022, is also expected to take place after June this year.
For these, Jio Cinema will leverage partnerships with Paramount+ and new content and services from potential partners such as Warner Bros. The company also gets the opportunity to demonstrate to advertisers how their spots can be targeted and customized via mobile and connected TVs.Īdditionally, this will serve as a shop window ahead of the company’s expected launch of SVOD activities in the second half of this year. Jio Cinema has promised advertisers that this year’s IPL will have a reach of 400 million users and a concurrent user base of 100 million. (This video strategy is a replica of the playbook that Reliance Industries used to break into India’s cellphone and mobile broadband market – first offering it for free, then a nominal sum and then hiking up the rates after it became the market leader.) MPA speculates that RIL will start charging subscription fees for IPL in 2024 using annual passes and dynamic pricing. But for Disney the scale of those losses as well as other headwinds, may force a strategic rethink.Ĭontrolling the digital rights allows RIL to attract customers to its Reliance Jio mobile broadband service and win new viewers for its Jio Cinema platform, while simultaneously offering for free a service that Star is charging for. (The analysis firm forecasts that RIL will earn $300-350 million in ad sales, while Star’s best-case scenario is $220 million.)įor deep-pocketed RIL that may be a justifiable loss leader. Media Partners Asia estimates that advertising revenues spawned by the two-month 2023 competition will end up around $550 million – representing a clear loss on the annualized cost of $1.2 billion, or roughly $600 million per conglomerate, for the tournament rights.
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