The Indian Premier League (IPL) has seen a significant decline in the overall valuation of its ecosystem for the first time in recent years.
A D&P Advisory study revealed that IPL’s enterprise value fell by 10.6% from a staggering ₹92,500 crore in 2023 to ₹82,700 crore.
This decline was largely due to the emerging challenges in the broadcast system, which could pose serious problems for the IPL in the coming years.
A major shift has taken place in the Indian broadcasting market following the merger of Disney Star and JioCinema, which has created a monopoly situation.
IPL ratings fall as women’s Premier League thrives
This merger has significantly changed the competitive environment, which previously fuelled aggressive bidding wars for IPL broadcast rights.
The last rights auction in 2022 saw fierce competition between Disney Star and JioCinema, which eventually earned the BCCI a whopping sum of INR 48,390 crores in a five-year deal.
However, with the two entities now merged, future broadcast cycles are expected to see less competition and potentially less lucrative bids for rights.
The report also mentioned that the failed Sony-Zee merger has further changed the dynamics of the streaming rights market.
Had the merger gone through, they would have posed a strong challenge to Disney Star and JioCinema, securing a three-horse race for the IPL broadcast rights.
Now, Sony and Zee will have a tough time challenging the Disney-JioCinema giant, reducing competition.
Interestingly, while the IPL ecosystem is facing challenges, the Women’s Premier League (WPL) has seen positive growth.
The value of the WPL ecosystem has increased by 8% from INR 1,250 crore in 2023 to INR 1,350 crore, indicating a bright future for women’s cricket in India.
The D&P Advisory report said, “This shrinking competitive field may stifle the aggressive bidding that has historically driven up media rights prices. The combined entity would have been in a stronger position to bid for the IPL broadcast rights in the future and would have given Disney and Jio stiff competition to acquire the rights, making it a three-horse race.”
Furthermore, the report also claimed that OTT platforms like Amazon, Apple and social media giant Meta are hesitant to invest in the IPL, despite the Indian league being almost at par with global giants like the NBA and NFL in terms of media rights costs.
The report further noted, “While these tech giants have made forays into other sports leagues such as the NBA, NFL and EPL, the unique monetisation of the Indian market and the IPL’s reliance on advertising and subscription models pose significant hurdles.”
‘Television remains more profitable for consumers’
It is also said that the future of IPL broadcast rights may face a more cautious bidding process due to the lack of intense competition.
The era of soaring bid prices driven by fierce rivalries between broadcasters could be coming to an end soon, impacting the growth of IPL media rights valuation.
The report added: “While TV remains more cost-effective for consumers, the landscape is evolving. While IPL matches are free on OTT platforms, the cost per GB of data for streaming is about Rs 6. This affordability has democratised internet access in rural and urban areas, fostering digital inclusion and fundamentally changing content consumption patterns.”
Mumbai Indians (MI) tops IPL franchise brand rankings
In terms of franchise record rankings, Mumbai Indians (MI) remain at the top despite their poor season earlier this year.
The franchise is known for its resilience and ability to identify and develop young talent, making it the only franchise to have won both the IPL and WPL.
After MI, Chennai Super Kings (CSK) rank second as a brand in the IPL, thanks to the influence of the legendary MS Dhoni.
Kolkata Knight Riders (KKR) secured third place, largely due to the impact of Shahrukh Khan, while Royal Challengers Bangalore (RCB) occupy the fourth spot.