IPL rights soar, but global reach remains a hurdle

The Indian Premier League (IPL) is batting big. The latest five-year media rights deal, starting in 2023, is valued at a staggering $1.2 billion annually, according to Omdia's report, "Why 2024 Could Prove to be a High-Water Mark for the Indian Premier League." This skyrocketing value highlights the IPL's remarkable growth as the fastest-growing major sports property globally.

However, the landscape has shifted considerably since the beginning of 2024. The IPL's influence extends beyond the cricket pitch, playing a pivotal role in the recent Disney-Reliance merger and Paramount's exit from Viacom18. This underscores the league's dominance in media consolidation and its role in shaping the future of Indian sports broadcasting and advertising.

The IPL isn't reliant on subscription fees to capitalize on its massive rights costs. Advertising and sponsorships remain the money-makers. India's advertising market is abuzz with innovation, and there are strong indications that 2024 will be a record-breaking year for IPL advertising. This is fueled by greater market confidence compared to 2023 and broadcasters introducing new revenue streams.

The Disney-Reliance merger, expected to finalize in 2025, is likely to see a marginal rise in advertising revenue for the 2025 IPL compared to 2024. With the consolidation of digital and linear rights, Reliance might leverage its market position to raise rates in the absence of competition. This combined entity could potentially control around 40% of India's total advertising market. Additionally, an increased number of games scheduled for 2024 further boosts revenue potential.

While the IPL reigns supreme in India, its global reach pales in comparison to the behemoth Premier League. Despite high viewership and hefty advertising revenue within the subcontinent, the IPL remains largely regional.

"Each IPL game's media rights are worth a jaw-dropping $16 million, surpassing the Premier League's average of $15.7 million," says Tim Westcott, Practice Lead for Omdia Digital Content and Channels. "The IPL still has a long way to go to match the Premier League's international footprint, although team owners are actively involved in new T20 franchises in the Middle East, South Africa, and the US."

This disparity highlights the IPL's next challenge: transforming into a global sporting giant. To bridge this gap and stand alongside the Premier League on the world stage, the IPL must prioritize strategies to expand its international viewership and enhance its global appeal.