FICCI Frames '14: Monetization of ecosystem will make India a better sporting nation

FICCI Frames 2014  being held  at Hotel Renaissance Mumbai Convention Centre is  a platform for exchange of ideas and knowledge between individuals, countries, conglomerates.  13th March 2014 i.e. Day 2 of this convention witnessed some more interesting interactive sessions. It kick started with three inspiring sessions  in a row – The Making of a Successful Film Franchise, Animation: Strategies behind Marketing of Successful Properties and Building and Monetizing the Sports Ecosystem in India. 

The session titled ‘Building and Monetizing the Sports Ecosystem in India’ was hosted by Gautam Bhimani, Commentator and Presenter, Star Sports , and Yannick Colaco, MD, NBA India, Nitin Kukreja, President (Sports), Star India and Shrinivas Dempo, Chairman, Dempo Group were the panelists at this session.

We have witnessed that the sports ecosystem in India is an evolving entity and it is not just  cricket that has fanatical followers any more but other sports too. It is not just cricket but a host of other sports too which is gathering a large fan following and how best to monetize this ecosystem in India was one of the main topic on the agenda . Apart from this the problems faced by the ecosystem and the infrastructure were the topics raised during the discussion.

“Cricket as a sport is surviving in India because it’s being advertised more in comparison to other sports. Nowadays other sports too are viewed with much interest  in every home through cable and satellite, but still there is a deficiency galore which makes India a non-sport country,” opined  Kukreja. He went on to add that they would continue doing their bit to help promote and get the right exposure for other sports apart from just cricket, but  what is more   important is that the different federations along with the government need to come together to help push and cultivate a sporting culture in the country.

In the US there is actually a developed broadcasters market. Basketball, as a sport is an example of how ecosystem works. There sports are a multi-million dollar industry in comparison to India. Colaco believes that before monetizing any sport it needs to be built from the ground up. “To set a similar kind of scenario in India you need to start it from a grass root level that is targeting the right audience from the age group of 6 year old kids to students and professionals. In India, everyone wants to run a league of their own be it Hockey league, Football league, Badminton league and even a kabbadi league is on the cards among others. It’s good to have packages like this but what after the league? How do you keep the fans engaged thorough out the year as in the case of cricket. That is the question,” asserted Colaco.
Sports today are not limited only to professionals from the field of sports  but has become a  lead platform for  passionate stars who wish to become celebrities.

Especially cricket and tennis has made sports stars celebrities by giving them more recognition, fame and money. But no sport can be dependent on the player who is associated with a specific sport. It is also the responsibility of federations and the authorities, in India to come together to help push and cultivate a sporting culture in the country. Hence the reason why we see a  lesser number of followers of other sports in comparison to cricket. 

Elaborating further on this point Kukreja said, “People follow sports in general in India, but invariably end up with cricket just because there are enough events happening around that specific sport. It’s nothing new what we doing here for cricket since every country does this to promote their sports through big events like leagues.” He is of the opinion that IPL works because it’s an experience, brings families together, it is packaged very slickly and this is how various leagues work around the globe. So he believes that it is imperative to have the required content that can keep fans engaged like they are with cricket.

Dempo sharing his views said, “The problem in India is that other sports are not broadcasted in the similar way cricket gets broadcasted. If cricket is broadcasted for 300 days, badminton is broadcasted just for 100 days. Consistency of product is what appeals to audience and it should be there throughout the year to engross them. Building aspects for other sports too is really important.” 

Adding further he said that in India winning or profiling of a particular sport or a league is not important because there is no program on any channel which actually profiles a specific league, a specific player or a specific team which can motivate their fans or followers and that is what actually lacking in the country.
Success stories do help in promoting a person, a sport or let’s say a league but apart from that building a surrounding is also very important. 

Is less awareness in the ecosystem the only problem which is preventing the creation of the right audience base in India or are there other reasons too? 
Sharing his comments on this point Kukreja bringing in the business angle said that we also need to look at numbers and return of investment (ROI), which is the most important proposition for a sports broadcaster. According to him the existence of the price cap regulation is a hurdle for the broadcaster.

Not only is money not flowing to broadcasters and federations as it is supposed to but complete monetization is not possible due to the existence of the public broadcaster.

Kukreja said, “Monetization is an important element as all sports are dependent on the ad revenues. Right capitalization is really important if we want to grow an audience base for other sports as in the case of cricket which is liked and played in every part of India than the other sports. Fundamental issues are there in terms of monetization and there is a requirement of healthy and sustainable ecosystem.” 

“Why are there are not much players in India when it comes to sports like F1 racing? That is because there is no infrastructure and where there is less infrastructure there is a limited number of players. We’ll need to have a better infrastructure in our surroundings to make India a sporting nation, as that is one of the causes why India is lacking in sports,” expressed Dempo. 

“One thing which has helped all the sports in India and abroad is the broadcasting of sports through the different media platforms available. Today there are television channels which are investing in sports with best packages and more than 100 crores have been invested in it. Federations should also participate in this to make India a sporting nation which will be beyond followers following few sports to more number of sports played around us,” pointed out Colaco.

Though we cheer for our favourite players, in different leagues or sports be it cricket, football, hockey, badminton, kabaddi, tennis etc. it is the right exposure the sport gets which is of utmost importance. Sports other than cricket too deserve to be pushed and be visible in the market.

The revenues from sporting events and broadcast continue to remain below par when compared to other countries. We have to effectively expand and mobilize the sporting community in India. Today the reality is that India needs to develop a sporting culture and to make a country a sporting nation it needs to have a stronger ecosystem and the right amount of monetization in this space.