As per KPMG Analysis 2022, the number of TV households in India is expected to reach 250 million by 2026, from 210 million in 2020. Television (TV) remains the largest media platform in India, both in terms of reach, as well as consumer engagement in terms of time spent. When it comes to TV consumption, sports has the highest reach among all genres on TV at 722 million in the first nine months of this year. The genre has remained largely resilient to the COVID-19 headwinds and is expected to scale the 2019 highs by the close of this year. The advertiser interest in sports broadcast has grown strongly with the increasing viewership and demographic reach offered by sports properties. Both traditional and new age businesses have turned the spotlight on sports TV broadcasting with the segment clocking revenues of INR7,560 crore in FY22 (with the TV + digital OTT sports market at INR 9,500 crore in FY22) as per KPMG India.
Through this whitepaper, “Sports broadcasting on TV – A match made in heaven”, launched at the CII 11th Big Picture Summit 2022, KPMG in India, CII & IBDF aims to look at the growth drivers for sports broadcasting in India, the potential runway ahead and how the value chain stands to gain from it.
TV has an unparalleled reach of 900 million viewers, the largest of any media platform in the country. Apart from the significant scale advantage of TV, relevance of TV for sports consumption stems from the fact that sports is essentially developed and shot for the large screen owing to the ability of TV to create a more engaging viewing experience compared to smaller screens like smartphones. Co-viewing is an intrinsic part of the sports consumption experience across the world and even more so in India owing to the emphasis on family viewing, for not only sports but also other genres – thus underscoring the importance of TV for sports consumption.
The carefully packaged entertainment rendered by domestic sports league and India’s performance in international platforms like the Commonwealth Games furthers the viewer interest in and engagement with sports. Corporates are also increasing their involvement in sports beyond advertising and are participating as franchise owners and/or engaging in grassroot development programs – thus playing an active role in development of India as a sporting nation. These efforts set in motion a virtuous cycle, as an increasing interest in sports fuels further consumption, which is beneficial for the entire value chain including the sports broadcasters.
Commenting on the findings, Akhilesh Tuteja, Partner and Head, Technology Media and Telecom, KPMG in India said “Given its wider reach and interest as compared to other content genres, sports on Television is one of the most monetisable genres. The Television and Digital OTT sports market is estimated at close to INR 10,000 crore in FY22, with sports on TV holding a lion’s share. With a large screen experience, co/family viewing and investments by broadcasters, bringing the best of Cricket and other sport to Indian viewers, sport on TV is likely to remain highly relevant for the foreseeable future.”
Vibhor Gauba, Associate Partner, Deal Advisory – M&A Consulting, KPMG in India said, “Advertisers on TV see tremendous value when it comes to sport. Whether it be traditional or digital first brands, the premium NCCS AB audiences that sport on TV has access to; means that these brands continue to see TV as the first port of call for increasing reach, building brand recall and relevance; and getting their messages across to consumers. Impact properties like IPL and PKL will continue to see brands flocking to them in the coming years.”
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