Disney Star and Viacom18 square up over IPL

The economics of the IPL are unlikely to add up this year as the holders of the broadcast and digital rights go head to head in a battle for viewers and advertisers. 

Background

Indian cricket fans face a choice between watching this year’s Indian Premier League (IPL) for free on a digital device (although they’ll still incur data costs for streaming) or paying to view on TV. Advertisers are being invited to place their bets with the media rights holders – Disney Star (broadcast) and Viacom18 (digital) – who have paid significant sums for the property.

Why it matters

Whether the two media giants will recoup their money will depend on their pitch to advertisers as much as viewers. Disney Star says TV is the best – and cheapest – medium for watching sport; Viacom18 says TV is not a good medium for effective buying. 

In new territory, advertisers are currently watching and waiting: effectively, this is the first time that IPL inventory is being sold by two separate entities, notes Mint. 

What’s happening

• Media buyers expect price rationalisation as the two companies are selling the same property across two different mediums. 
• Viacom18 is offering multiple languages, different camera feeds and an immersive experience. 
• Alongside more channels and regional feeds, Disney Star is offering customised solutions to its clients.

Key quote

“[TV] is one of the most effective mediums where brands are built. Even today, after a decade and a half of digital growth in India, advertisers’ spending on digital for pure-play brand building is 1/5 of what it spends on television” – Ajit Varghese, head of network/ad sales at Disney Star.

Final thought

Mint observes that the two networks are expected to lose ₹3,000-3,500 crore on the IPL this year.

Sourced from Mint

[Image: Indian Premier League]