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Amit Mitra

Mumbai, Feb. 17

The Indian Premier League, which has emerged as a hot media property and redefined the concept of sports in India, is likely to continue its upbeat streak, despite the recessionary trends.

Industry experts at the FICCI Frames 2009, which saw a large gathering of media and entertainment industry players, feel that the forthcoming second edition of the T20 event will attract advertisers and media buyers at the same pace.

Echoing the industry’s sentiments, the annual FICCI-KPMG report on the industry said, “Gauging by industry reaction, IPL is expected to continue as a prime driver in the media and entertainment industry for the coming year.”

Further, advertising rates for other cricket telecasts are also expected to increase, since the IPL may be used as future reference points by broadcasters.

Indeed, IPL has provided a significant leg-up to the advertising industry. According to estimates, IPL is expected to bring in Rs 1,190 crore, generating TV advertising worth Rs 650 crore, get sponsorship (both team and central) worth Rs 290 crore and stadium advertisement of Rs 80 crore every year.

A consortium consisting of Sony Entertainment Television and Singapore-based World Sport Group acquired the 10-year global broadcasting rights of IPL for $1.026 billion. As part of the deal, the consortium is to pay the BCCI $918 million for the television broadcasting rights and $108 million for the promotion of the tournament.

After securing the bid, Sony-WSG had re-sold parts of the broadcasting rights geographically to other companies.

The KPMG report points out that the acquisition cost was then considered steep for the domestic tournament. “SET has to pay $316 million in equal instalments over the initial five years and $608 million for the rest five years. This means SET has to pay about Rs. 253 crore to BCCI in 2008. However, with the success and popularity of the tournament, the investment seems to have paid off for the broadcaster.”

Last season, the viewership that the event attracted had pushed up advertisement rates for a 10-second slot to Rs 5-10 lakh, which was marked Rs 2 lakh at the start of the tournament. FMCG companies such as ITC, Mother Dairy and Nestle, besides insurance companies, Pizza Hut and Cipla were the leading advertisers last season.

“IPL’s ability to sustain and grow its popularity in the long-term depends on the ability of individual franchises to break out and become large media properties on their own.

“Franchisees may also have to increase their marketing and promotional spends to effectively monetise their fan base and build brands out of their respective teams. Apart from finding more team sponsors, franchisees may try to increase the mix of premium seating in their home stadiums and generate revenues from food and beverages,” the reports feels.

In any case, the league itself is also set to expand with the addition of four new franchisees from 2009-10, which could generate additional opportunities for advertisers.

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