As excitement over the the ICC World Cup 2019 mounts, starting on Thursday, official broadcaster Star India is all set to reap the benefits
By Asmita Dey
As excitement over the the ICC World Cup 2019 mounts, starting on Thursday, official broadcaster Star India is all set to reap the benefits. The company is expected to notch up `1,800 crore in advertising revenues, Sandeep Goyal, chairman at Mogae Media, told FE.
Star India’s advertising revenues from the 2015 cricket world cup were an estimated Rs 700-1,000 crore.
Goyal said Star India is providing two kinds of packages for advertising on television — higher value ad packages for India-only matches, the cost for which ranges between Rs 17 lakh and Rs 20 lakh per 10-second ad slot, and a ROS (run of schedule) package that typically consists of mostly non-India matches, which cost advertisers between Rs 6 lakh and Rs 7 lakh per 10-second ad slot.
“The (ad) rates for semi-final and final matches will be even higher when you get closer to the finals and further up if India plays in these matches,” analysts said.
Of the expected Rs 1,800 crore of advertising revenues, Star India’s digital platform Hotstar is likely to earn Rs 250-300 crore, Goyal said.
Star India did not comment on ad packages. Gautam Thakar, chief executive officer, Star Sports, said, “The ICC Cricket World Cup is regarded as the most prestigious prize in world cricket, both by players and viewers. Bringing the competitive environment that every country holds during this tournament; the campaign showcases the very nucleus of the sport and how every team is going to England to get their hands on the crown of cricket.”
Apart from ad revenues, broadcasters also earn revenues from distribution, Goyal explained.
“The subscription to channels showing the game goes up significantly. Cricket was always an opportunity to substantially increase revenue from distribution. Since Star has global rights now, income from overseas markets (advertising revenues and subscription or pay revenues) also brings in considerable revenues,” Goyal said.
Star India is estimated to garner Rs 500-crore revenue from (India) distribution, Rs 500 crore from overseas sale of feeds and pay revenues, and Rs 200-crore ad revenues from overseas markets. So, overall, Star India’s revenues would be around Rs 3,000 crore, which is a very substantial return on investment, Goyal added.
Star India and Star Middle East were jointly awarded the audio-visual rights for ICC (International Cricket Council) events for an eight-year period spanning 2015-2023. Reportedly, Star India had to shell out close to Rs 12,000 crore for the rights. ESPN Star Sports had rights to ICC events from 2007-2015.
Sources said 80-85% of the inventory has been sold before the start of the tournament. Brands like PhonePe emerged as top spenders, buying bundled packages (IPL and world cup). OnePlus, Havells, Amazon.com, Amazon Pay, Coca-Cola, Oppo, CEAT Tyres, Uber, Uber Eats, ICICI Lombard are other big advertisers for world cup this year.
Star has lined up an array of shows for the tournament. While the show Fab 15 will be dedicated to players in the Indian squad, Follow the Blues will track all the light and serious moments from India’s tour to England and Wales. Notably, Star Sports will also have women fronting the English coverage of the tournament.