The Hindu Business Line : Study sees big bucks for cricket channel

AN exclusive cricket channel could garner revenues of over Rs 16,000 crore in five years, projected a feasibility study prepared by the Punjab and Rajasthan Cricket Boards.

Speaking to newspersons, Mr I.S. Bindra, President, Punjab Cricket Board, said, "The study has been presented to the BCCI on Tuesday. We hope the Board will accept it."

He said that launching a channel by the cricket Board would put an end to the legal battles between a broadcaster and itself. "Since 1987, there have been disputes surrounding the television rights including the latest with Zee Telefilms." Also, besides international cricket organised by the BCCI, the channel will air domestic and even college level games.

Elaborating, Mr Lalit Modi, President, Rajasthan Cricket Board, said that once the BCCI gave its nod, the channel could be launched in three-four months. A separate company could be set up which would be a professional and independent organisation answerable to a board. The company would strive to develop production competences, airtime marketing skills, pay distribution skills, international development and creating merchandising and event management skills.

On the revenue front, the study has projected that the earnings would grow from Rs 2,149 crore in the first year to Rs 3,132 crore in the third year and grow to Rs 4,781 crore in the fifth year. The 24-hour pay channel would beam at least 29 Test matches and 43 ODIs enabling the BCCI to generate five times more revenue than it would otherwise earn by the way of selling the telecast rights.

"Currently in India the primary revenue for every sports channel be it ESPN, DD Sports or any other channel is from cricket. Over the years we have seen a number of court cases regarding the award of TV rights by BCCI but once the Board starts its own channel then there is no issue of bagging the rights as we own the rights," Mr Modi added.

Commenting on the present scenario, Mr Modi said that the rights for cricket telecast are fragmented among different sports channels. Also, the company could tap the capital markets through an initial public offer.

However, media planners said that it would be difficult for any channel to garner so much revenue. "The entire television industry is estimated to be at Rs 7,000 crore (includes both advertising and subscription revenue). So can a sports channel per se manage to get so much money?" said a Mumbai-based media planner.

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