JioCinema’s IPL 2024 LIVE Streaming has shattered records and made headlines with its BLOCKBUSTER opener and massive audience engagement. On the opening day, 1.5 crore people tuned in to JioCinema to witness the excitement and thrill of IPL 2024. The excitement peaked when MS Dhoni hit a mammoth six, which was watched by millions of people simultaneously. This is a testament to JioCinema’s capability to deliver top-quality streaming experiences to its users.
Viacom18, which has pitched for 500 million viewership from IPL, is slightly behind YouTube India’s monthly viewership of 514 million. However, JioCinema’s opening day viewership of around 50 million viewers is a clear indication that it is on course to surpass YouTube. This has not come as great news for Disney-Star as both Star Sports and Disney+Hotstar are behind a paywall, which is likely to result in a drop in revenue.
|IPL 2024 LIVE Streaming: JioCinema shatters records with BLOCKBUSTER opener
|1.5 Cr people tuned in on JioCinema when MS Dhoni hit a mammoth six
|Viacom18 vs YouTube
|Viacom18 targets 500 million viewership, slightly behind YouTube India’s monthly viewership of 514 million
|JioCinema vs Disney-Star
|JioCinema’s free streaming model disrupts Disney-Star’s paywall model
|Ad Revenue Distribution
|Viacom18 set to bag 60% of the ad revenue from IPL
|Projected Ad Revenue
|JioCinema’s projected ad revenue is 60%, while Star’s ad sales could be around $200-220 million
|Disney-Star believes sports consumption is still high on TV than digital
|JioCinema is offering 4K live streaming for free
|JioCinema recorded around 50 million viewership on the opening day itself
|Viacom18’s Digital Rights Cost
|Viacom18 bagged IPL Digital rights for ₹20,500 Crore
|Concerns for Viacom18’s Business Model
|Experts believe it will be difficult for Viacom18 to recover the amount in the next two years
|Comparison of Sponsorship Deals between JioCinema and Star
|Star Sports had roped in 13 official sponsors, selling them at a higher price, earning more revenue
Viacom18 is set to bag 60% of the ad revenue from IPL, with digital revenue surpassing TV for the first time. According to Media Partners Asia, the projected ad revenue for JioCinema will be 60%, while Disney-Star might find it challenging to recover the Rs 23,575 crore it paid to secure IPL Media rights. MPA also projected that Star’s ad sales could be around $200-220 million, while JioCinema could touch the $350 million mark. However, both platforms have struggled to sell their entire ad spots.
“IPL incumbent rights holder Star has struggled to withstand Jio’s onslaught as well as a challenging macroeconomic environment,” MPA stated in its report.
Despite the competition, Disney-Star remains confident. Sports consumption is still high on TV than digital. Furthermore, time spent on TV is also greater than on digital platforms. Elara Securities believe that time spent and consumption of matches will remain high on TV, as digital will primarily be convenience-led and on-the-go viewing. IPL on digital may get a larger number of viewers or reach; however, time spent compared to TV remains much lower.
Viacom18 is winning the IPL war by offering a free-for-all live streaming service on JioCinema, looking to get a more significant share of viewership. JioCinema is offering 4K live streaming for free, which is a massive incentive for viewers to tune in. Disney-Star, on the other hand, has put IPL behind a paywall, with a subscription-based model on Hotstar.
Viacom18’s free model has also forced Disney-Star to offer 12 matches for free on its free-to-air Star Utsav channel. It has also forced Star to launch its own 4K channel to keep up with JioCinema in terms of picture quality. With higher viewership, JioCinema is also enticing brands to come on board for a cheaper ad rate than Disney-Star.
However, market experts are not very happy with JioCinema’s free-for-all offerings. To note, Viacom18 bagged IPL Digital rights for ₹20,500 Crore. Experts believe it will not only be difficult for Viacom18 to recover the amount in the next two years but also hurt the Indian OTT market.
“It would be difficult for them to recover even 30-40 percent of IPL’s content acquisition cost via the digital route if it is free in the near term (the next two years). JioCinema offering IPL free will [also] be a big negative for ARPUs of other OTT platforms in a market where most of them are already available at cheap prices versus global averages,” Karan Taurani, SVP at Elara Capital, told BT.