From 10th IPL edition, Hotstar set to earn Rs 220 crore, up from Rs 65 crore

By: | Published: March 10, 2017 3:35 AM

Star India's video over-the-top (OTT) platform is expected to witness almost a three times jump in its advertising revenue including money received from sponsorship at R220 crore from the 10th edition of the Indian Premier League, according to industry sources.

Union minister of electronics and information technology Ravi Shankar Prasad shakes hands with
Wipro chairman Azim Premji’s son Rashid Premji, at a meeting in New Delhi on Thursday.

Star India’s video over-the-top (OTT) platform is expected to witness almost a three times jump in its advertising revenue including money received from sponsorship at R220 crore from the 10th edition of the Indian Premier League, according to industry sources. In the ninth edition of the IPL, the OTT platform earned total advertising revenue of approximately R65 crore. The 10th edition of IPL will start from April 5 and will end in May. A total of 60 matches will be played during the tourney. “We have seen a dramatic growth in viewership especially in case of cricket. As Hotstar has become the primary screen for viewing live sports like cricket, we expect 130 million mobile Internet users to tune into Hotstar to watch IPL matches. Marketers are recognizing that these are audiences that are TV light or not present on television at all,” said d Ajit Mohan, CEO, Hotstar.

The platform which has digital telecast right of the Twenty20 cricket tourney has already signed in auto-maker Maruti Suzuki, besides Dell and Chinese handset maker Oppo as co-sponsors, as Vivo remains the title sponsor. According to Mohan more advertisers are expected to come on board, in the coming weeks. Last year, the OTT platform got as many as 10 advertisers including Flipkart, Raymond, Axe Deodorant, Volini, Lloyd, Hindware, Hero Fincorp, Airtel, and Amazon, besides Vivo.

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According to industry sources, one of the reasons behind a big jump in Hotstar’s revenue is the increase in its sponsorship as well as advertising revenue. This year, the OTT platform is selling the slot of co-sponsor/presenting sponsor for about R20 crore – almost a 100% jump in rates compared to last year. Last year, a slot of co-sponsor/presenting sponsor was sold for R10 crore.

Similarly, Hotstar has increased its ad rates for per 10 second ad spots. While last year, a ten second ad spot during IPL matches costed R1,500 cost per thousand impression (CPM), this year Hotstar is charging advertisers anywhere between R3,000-3,500 CPM. According to industry observers one of the reasons behind the OTT platform being able to command a high ad rate is access to easy access to the Internet on mobile.

“The huge proliferation of Reliance Jio which has forced other telecom players also to drop data prices, has lead to an increase in usage of Internet on mobile. This in turn has guaranteed an increase in number of eyeballs. Hotstar is betting on the fact that close to130 million viewers in total will watch the sports tourney compared to100 million viewers last year,” said Gopa Menon, vice-president, Isobar, a full service digital agency from the house Dentsu Aegis Network.

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