JioStar’s likely pull-out from its International Cricket Council (ICC) deal has forced the latter to look for alternatives but platforms like Netflix and Prime Video have not shown much interest. The whole episode exposes the widening gap between cricket content costs and recoverable revenue, writes Alokananda Chakraborty
l Why is JioStar looking to exit the deal?
JIOSTAR IS REPORTEDLY renegotiating the $3-billion TV and digital media rights deal with the ICC for cricket broadcast over a four-year period starting 2024. The broadcaster has cited mounting financial losses as the primary reason. Its audited standalone accounts show that provisions for anticipated losses on sports-content deals have shot up — from Rs 12,319 crore in 2023-24 to Rs 25,760 crore in 2024-25. This sharp spike underscores monetisation challenges and a widening gap between content costs and recoverable revenue.
The rising dollar and a falling rupee have added to the pressure because ICC payments are dollar dominated. With the dollar crossing Rs 90, the effective burden on the broadcaster has already risen to $3.3 billion.
Adding to Jio’s concern, India is scheduled to play only 28 out of the 179 ICC matches under the current rights cycle. That essentially means a large number of matches will involve teams with lower audience pull in India, which translates into lower viewer retention and reduced ad revenues, the broadcaster avers.
l How do the two parties value the ICC properties?
AS PER SOURCES, JioStar wants the transaction value of the broadcast properties to be reduced to $2-2.1 billion over the 2026-29 cycle. The ICC is said to be seeking $2.4 billion for the four-year cycle. The matter has assumed urgency because the ICC Men’s T20 World Cup 2026 to be co-hosted by India and Sri Lanka kicks off in February. The ICC is said to have tapped JioStar’s rivals to pick up the rights to the rest of the broadcast cycle. Sony Pictures Networks India and Netflix (which does not have a tentpole cricket property) are said to be the frontrunners, though neither has expressed open interest given the weak TV advertising landscape in India and the price-sensitive nature of OTT consumers. At under $2 per month, the average revenue per user for OTT plans in India is among the lowest in the world.
l Why renegotiation is crucial for JioStar
A LOT RIDES on this for the JioHotstar channel, which has aggressively positioned itself as the leading destination for live sports in India, investing heavily in digital rights to secure long-term dominance. The broadcaster inherited not just the ICC deal from Disney’s Star India, but forked out a massive $6 billion (Rs 48,390 crore-plus) for the Indian Premier League’s (IPL) digital and television rights for 2023-27. However, the ban on real money gaming and fantasy platforms, the single largest advertising category in cricket, has wiped off Rs 7,000 crore in potential advertising spends.
That apart, it has to deal with the looming consolidation in the OTT space with rival Netflix announcing last week it will acquire Warner Bros. Discovery in a $72-billion deal. Many of the English programming titles under an April 2023 deal between JioCinema (part of the merged JioHotstar) and Warner Bros. Discovery, includes shows such as House of The Dragon and Succession, Euphoria, The White Lotus, that will likely shift to Netflix. Which essentially means JioStar must work that much harder to hold on to its current subscribers numbering 300 million, just shy of the global OTT giant Netflix’s last reported number of 301.63 million.
l What this says about cricket broadcast in India
THIS EPISODE IS a wake-up call for the country’s cricket ecosystem, say experts. While cricket still contributes the lion’s share to India’s sports advertising revenue — 85% of the total sports advertising revenue of around Rs 16,633 crore in 2024 — a 2025 Nielsen report showed that cricket’s popularity among Indian youth (18-30) has dipped between 2019 and 2025, with younger fans exploring sports such as motorsport, basketball and MMA. “Cricket has officially hit its peak and the hype cycle is ending. It is a cause for concern when broadcasters are saying that they can no longer justify the economics of the media rights. When broadcasters start exiting, it means valuation has peaked,” Prashant Joglekar, founder of SportsBiznet tells FE.
l Will the ripples be felt in the IPL ecosystem?
BRAND FINANCE ESTIMATES that the IPL ecosystem lost a fifth of its value in 2025, slipping to $9.6 billion from $12 billion a year earlier. A mix of geopolitical uncertainty, an aggressive mega-auction cycle and sweeping franchise reshuffles knocked the league off its usual growth trajectory, its latest report said. This will also be the first time in two years that the IPL’s brand value has slipped below the $10-billion mark, the consultancy noted.
Observers say all this might also lead to the IPL rights in the 2027 cycle to plateau or fall, unless other players begin to bid aggressively. If the deal comes at substantially lower than the current `48,390 crore-plus, franchisee valuations could also collapse by up to 30%.