Mumbai: The 2024 FICCI EY report has noted that a new business model will emerge for cricket. To enable a sustainable business, owners of high-priced cricket rights will re-look at the business model for cricket, experimenting across data subsidisation, e-commerce linkages, premium 4k and 8k bundles, CTV packages and limiting features for free matches in order to incentivise subscription.
Non-cricket sports will rethink strategy:
- Between football, kabaddi, kho-kho and wrestling, a significant audience base will be built, which will be monetised through ad sales, sponsorships, live event revenues and gamification
- Other niche and premium sports like rugby, basketball, baseball, etc., will go premium and build a model around subscription and merchandising
Audiences will segment:
- Viewership will be maximised by offering live sports with differentiated content and features across CTV, linear TV, mobile and free TV.
- Pricing and ad rates will vary across all media to enable a wider range of advertisers to invest in the sports genre
Sports rights value will rationalise:
- Given the merger of two of three large sports broadcasters (Disney-Star and Viacom18), the report expects the rights market to rationalise from currently unsustainable highs.
- Interest in non-cricket sports will consequently remain flat, since focus will be on monetizing high-value rights
Go short, go faster!:
As time constraints in metros reduce the available discretionary time, build shorter events like T10 tournaments, one-day cricket matches with two innings of 25 overs each, shorter halves and quarters, and rules that incentivise quick action like powerplays
Enable TVOD at scale:
Digital viewership saw a significant growth in the last few years. With free streaming provisions and more widespread adoption of 4G and 5G spectrums, the trend is expected to persist. However, the sports digital rights owners are likely to experiment with their monetisation strategies, leveraging innovative pricing models like sachet pricing for niche sports content, premium 8k feeds, and exclusive fan offerings
Use short video to target younger audiences:
As media consumption habits shift towards shorter content formats, leveraging short-form video platforms to disseminate content will become crucial for attracting youth viewers
Integrate esports:
Marquee sports properties are anticipated to integrate esports as an extension of their tournaments. Sports leagues such as IPL, ISL, and PKL should incorporate esports provisions and take esports viewership mainstream and engage viewers throughout the year
Build distribution efficiency:
As technology advances rapidly and mobile sports consumption grows, hybrid models for distributing live events are anticipated to emerge. These models would include direct-to-mobile technology, enabling content delivery without the need for an active internet connection.
Create heroes and build IPs:
To expand sports reach in the nation, developing new and contextual IPs centered around sports rivalries, iconic figures, and other compelling themes is crucial
To foster the growth of sports beyond men’s cricket, cultivating sports heroes and creating corresponding content are essential steps to attract a broader audience
Build a culture of weekend sports events:
Create a calendar of weekend sports events for friends and families to consider in their entertainment options, combined with food and beverage and entertainment
2024 promises a lot of sporting action:
The report noted that this year, exciting prospects are anticipated in both cricket and emerging sports, with the T20 World Cup scheduled in June in the West Indies and the USA, presenting an opportunity for India to secure an ICC trophy win after a decade
- The IPL and ICC sponsorships are up for renewal, marking a significant tipping point on the business table, and India’s active participation is expected to continue
- The Paris Olympics in July is expected to be a gamechanger, building on the success of the Tokyo Games, with high expectations for Indian athletes to emerge as popular icons on the international stage
- The growing cultural impact of Indian athletes worldwide aligns with the mainstreaming of sporting habits in society, emphasizing health, wellness, fitness oriented activities, and recreational sports
- Anticipated developments in fan engagement, including virtual experiences and augmented reality, coupled with a focus on inclusiveness, reflected in the Hangzhou Asian Games, where one-third of winners were from rural areas, contribute to India’s evolving sporting legacy.
