Star Sports Has Lost Out on Rs 15 Crore Because India is Not Playing the World Cup Final
Star Sports would have charged significant premium selling last-minute ad spots for as high as₹25-30 lakh per 10 seconds if India played the finals.
(Photo Credit: Reuters)
New Delhi: The India vs New Zealand marquee match in the World Cup semi-final did not just leave Indian fans at a loss, but have also cut profit aspects of the official broadcaster. Star Sports has incurred a loss of Rs 10-15 crore after the exit of the Men in Blue. The disappointment of the fans after the Viral Kohli-led Indian side lost to Kiwis was reflected in the viewership and revenue of Star Sports.
Star Sports would have charged significant premium selling last-minute ad spots for as high as Rs 5-30 lakh per 10 seconds if India played the finals, reported the Live Mint. Presently, the same spots are expected to be sold for Rs 15-17 lakh.
“Although India’s exit is disappointing, but still this has been a bonanza time for brands with more than 100 days of non-stop cricket action divided between the Indian Premier League (IPL) and ICC World Cup,” Live Mint quoted Sandeep Goyal, chairman, Mogae Media, a Mumbai-based marketing and communication agency.
Independent media consultant Harsha Joshi said that since the broadcaster has been selling advertisements in bundled deals, leaving a small inventory for last minute buys, there may not be significant revenue loss. “But the opportunity of selling a few last-minute spots has been lost because of India’s exit,” Joshi said, adding that even if the broadcaster had sold the inventory at Rs 30 lakh per 10 seconds, it would have made an additional ₹8-10 crore.
“Brands do pay the huge premium, often launching new products/services, during a World Cup final match as it offers tremendous reach,” she said. Mint had reported earlier that the broadcaster is expected to make Rs 1,800 crore in ad revenues from the global cricket extravaganza, which will conclude on 14 July.
“It’s a long period at the peak of summers, which means certain brand categories that do not advertise during this time, also came on board to get consumer eyeballs through World Cup matches, ” noted Mogae Media’s Goyal.
A typical World Cup match has about 5,500 seconds of total ad inventory, while during the finale, depending on the demand, Star can load up to 7,000 seconds of inventory, which can further increase its ability to make revenue. Leveraging the popularity of the ICC Cricket World Cup, a once-in-four-year event, that is being played in England and Wales, Star has signed over 40 top advertisers, including PhonePe, OnePlus, Havells, Amazon, Dream11, MRF Tyres, Coca-Cola, Uber, Mondelez, Oppo, Philips , Ceat Tyres, Swiggy, Airtel, Vodafone, Netflix, Paisabazaar and ICICI Lombard, among others.
Star Sports is expected to generate between Rs 1,200 crore and Rs 1,500 crore through television advertising and an additional Rs 300 crore on its video streaming platform Hotstar, according to estimates by media buyers. These estimates are more than double the Rs 700 crore revenue that Star had booked in the 2015 World Cup, Moneycontrol.com had reported.
Several factors have worked in Star’s favour in this World Cup. The match timings in England are in tune with Indian television viewing time, and most of India’s games also fell on weekends, when viewership soared, further fuelling ad revenues. This year, Hotstar has opened an additional stream of ad revenue, with Star India pushing bundled ad deals, including both television and digital platforms. In 2015, Hotstar streamed the World Cup matches but didn’t monetize it by selling ads.
The World Cup revenues add to the blockbuster Indian Premier League season, which generated advertising revenues worth₹2,500 crore.
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