IPL study report: Mumbai Indians head IPL branding valuation ranking, CSK second but IPL ecosystem valuation declines by 10.6 percent

For the first time in recent years, the Indian Premier League (IPL) ecosystem valuation has seen a 10.6 percentage decline according to a study conducted by D & P Advisory. As per the report, the IPL business enterprise value which was Rs 92,500 crore in 2023 has come down to Rs 82,700 crore with the demand constraints being attributed as the prime concern that the league could face in the coming years. And at the same time, the Women’s Premier League ecosystem value has increased from Rs 1,250 crore in 2023 to Rs 1,350 crore, marking a 8 percentage rise.

As per the study, the biggest reason for the drop in value is the changing broadcast landscape in India which is headed towards a monopoly after the merger of Disney Star-JioCinema. When the IPL broadcast rights were up for grabs in 2022, Disney Star and JioCinema were engaged in a stiff competition as the BCCI eventually made Rs 48,390 crore in a five-year deal. However, with both these firms merging together, D & P Advisory’s report titled “Beyond 22 Yards – IPL’s Legacy and WPL’s Vision” the IPL is expected to face reduced competitors and bidders in the next broadcast cycle. “This narrowing competitive field may stifle the aggressive bidding that has historically driven up the media rights prices,” the report noted.

The report says that the failed merger of Sony-Zee has altered the market dynamics to such an extent that the two entities would struggle to challenge Disney Star and JioCinema. “The combined entity would have been in a stronger position in bidding for the IPL broadcasting rights in the future and would have given a strong competition to Disney and Jio to acquire the rights, making it a three-horse race,” the report said.

The report also mentions the reluctance shown by OTT platforms Amazon, Apple and social media giants Meta towards investing in the IPL, which has positioned itself alongside the NBA and NFL with the cost of the media rights. “Although these tech-giants have made inroads into other sports leagues like the NBA, NFL, EPL, the unique monetization of Indian market and IPL’s reliance on advertising and subscription model pose significant hurdles,” the report says.

And as far as the future of the broadcast rights goes, the report says: “The potential dearth of vigorous competition could lead to a more conservative approach in the bidding for IPL media rights. The days of escalating bid prices driven by fierce competition may be behind us, casting a shadow over the future growth trajectory of the IPL media rights valuation.”

The digital transformation

Though Disney Star’s bid (Rs 23,575) for television rights fetched the BCCI more than what JioCinema offered for digital (Rs 20,500) in the current cycle, the report also finds a shift in viewership dynamics. More than the linear medium (television), the cheap access to the internet means there is a change in content consumption and inclusivity in the rural areas.

“While TV remains more cost effective for consumers, the landscape is evolving. Although IPL matches are free of cost on OTT platforms, the cost per GB of data for streaming is approximately Rs 6. This affordability has democratized internet access across rural and urban areas fostering digital inclusivity and fundamentally changing the content consumption patterns,” the report says.

While the Indian audience have generally preferred a communal tradition of watching matches together, this landscape is also changing. Instead, thanks to the OTT’s interactive means, more personalised interactions are being sought by the fans as there is an appetite for more in-depth commentary and analysis.

“OTT services also enrich the viewing experience and supplementary content, from pre-match analyses to behind-the-scenes insights, enhancing viewer engagement beyond live match coverage. These platforms satisfy a deep appetite for in-depth commentary and expert opinions, with nearly 70 percent of fans engaging in pre-match analysis,” it said.

WPL on the rise

The WPL, which is only two years old, is witnessing giant strides with the sponsors showing trust in the league. Like the IPL, the major brands have shown their eagerness to engage with the burgeoning brand of women’s cricket. “While stadium capacities have stayed consistent, the number of fans attending the matches has surged by over 50 percentage, reflecting increasing enthusiasm and support for the WPL. This surge in attendance not only underscores the growing popularity of the league among the fans but also enhances its appeal to global brands,” the report said.

MI rank top

As far as franchisee branding rankings are concerned, despite their onfield struggles, Mumbai Indians continue to hold fort. The only franchise to win both the IPL and WPL, the report says the biggest strength of Mumbai Indians is their ability to bounce back from adversity and their talent for discovering and nurturing young talents. Chennai Super Kings, riding on the Dhoni factor, come second followed by Kolkata Knight Riders at third position because of Shahrukh Khan influence. Royal Challengers Bengaluru are in the fourth spot.

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