Indian sports streaming is built on the frisky pillars of the freebie model, entailing a hefty price tag for OTT platforms. In a country where cricket is as serious as religion, streaming comes with a plethora of responsibilities, and amidst this, platforms are opting for free viewing.
Is this freeview model viable?
To paint a picture of the big money involved, the merger of Hotstar and Reliance Group’s TV and streaming media assets paid around $3 billion for the rights to broadcast International Cricket Council (ICC) events in India from 2023 to 2027.
With no subscription requirement, audiences can watch for free. Despite massive daily viewership, this model doesn’t seem financially viable in the OTT market. While audiences love it, it poses monetary challenges for the platforms.
However, they also benefit from it.
The freebie model adopted by Disney+Hotstar and JioCinema, broadcasting major cricket events for free, significantly boosts their exposure. By leveraging cricket’s immense popularity, these platforms attract millions of viewers who might not otherwise subscribe. This strategy maximizes ad revenue while introducing a vast audience to their content libraries. As viewers become accustomed to the platforms’ offerings, there is a higher likelihood of them eventually subscribing.
The Disney-Reliance alliance dominates India’s cricket ad revenue market but faces challenges covering their hefty $3 billion investment in ICC broadcasting rights. Despite this, they stream major cricket events like the T20 World Cup for free, banking on ad earnings. The ICC deal spans marquee tournaments generating significant ad revenues, though profits may be elusive.
The strategy aims to attract a wider subscriber base leveraging cricket’s allure, pivotal in India’s entertainment landscape.
Disney+Hotstar, post IPL loss, strives with 39 million subscribers, targeting mobile broadband users during the ongoing T20 World Cup. The merger consolidates vast media assets, bolstering their position. JioCinema, in tandem, offers free IPL access, akin to their telecom launch strategy.
The conglomerate holds ₹55,000 crore cricket rights for 4-5 years, projecting 80-90% of ad revenues. Financial viability remains uncertain, yet the gamble could secure long-term growth through subscriber expansion.