With phase 2 of the IPL 2021 around the corner and the expansion of the IPL in 2022, the official broadcaster and live streaming partner, Star Sports and Disney+Hotstar are expected to earn Rs 8500 crore in ad revenue between these two seasons.
Star Sports has a jam-packed sports broadcasting schedule for the remainder of 2021 and beyond. From September 2021 to May 2022, the sports broadcasting network will be airing phase 2 of IPL, Pro Kabaddi League 2021, Indian Super League 2021/22, New Zealand tour of India, South Africa tour of India, West Indies tour of India, IPL 2022 mega auction and the IPL 2022 itself with the addition of two new teams. The action-packed schedule of Star is expected to help them generate Rs 8500 crore in ad revenue.
According to industry estimates, Star Sports along with Hotstar had earned about Rs 2,600 crore in ad revenue from the IPL last year. Industry estimates reveal that the broadcaster is charging between Rs 13 – 14 lakh for a 10-second slot.
As per industry sources, the sports broadcaster has initiated various sponsorship packages starting from Rs 150-170 crore for a co-sponsor slot. The associate sponsor package being worth Rs 40-50 crore and some small packages having a price range between Rs 25-27 crore.
As for Disney+ Hotstar, the over-the-top (OTT) platform is believed to be charging Rs 180 CPM (cost per thousand impressions) for a single ad slot.
With the growing popularity of the league around the world, the figures are expected to increase even further in the coming year.
In a statement, Anil Jayaraj, executive vice president, Star Sports, said, “IPL has been the hottest property and over the years we have consistently seen brands deliver their objectives successfully via the platform. It’s the only property that sees traction across demographics and provides the best opportunity for brands who are looking to drive customer acquisition and growth agenda at the start of the financial year. We have witnessed very high demand, and will soon be nearly sold out for almost all the advertising slots.”
The upcoming ICC World Cup is also expected to be one of the major contributors alongside the Indian Premier League to the ad revenue of the broadcasting network.
Star Sports has paid a whopping Rs 16,348 crore for the media rights of IPL for five years. They have been paying an average of Rs 3300 crore per season according to the current deal. The acquisition cost for the IPL is set to further increase with the inclusion of two new teams from the next edition of the tournament.
The addition of two new teams will also increase the number of matches, which is bound to attract more sponsorship and advertising deals.