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Despite the ₹2,600-crore Sony Pictures Network-Zee deal creating a duopoly, industry watchers say the two dominant players in the market — Japanese giant Sony Corp-owned SPN and 21st Century Fox-owned Star India — will put greater effort in enhancing the sports properties.
“A sports channel needs to have content for 12 months and not just during the sports season. It is strategically a good deal. A deal like this will give a lot content to keep the viewer engaged and thereby ensure consumer stickiness,” said Frank D’Souza, Lead Partner, Media and Entertainment, PwC.
Vinit Karnik, Business Head, ESP Properties, said: “The deal strengthens SPN’s portfolio. For the industry, there may not be a bidding war and it will bring parity from an acquisition standpoint. However, we believe that marquee properties like IPL or football will still be competitive.”
Both Star and SPN have a formidable content line-up. Star India has holds the telecast rights of BCCI, ICC, Cricket Australia, English Cricket Board, Formula 1, EPL, and tennis grand slams like Wimbledon and French Open.
SPN on the other hand has the rights to IPL, FIFA, UEFA Euro, NBA and UFC.
The deal also gives SPN access to media rights to many golfing events, matches under most African cricket boards and the PCB and US Open.
Industry watchers also say that SPN will add at least five sports channel to its kitty post the acquisition, taking the total number to nine while Star India will have eight channels in its portfolio.
Raja Lahiri, Partner, Grant Thornton India LLP, noted: “Sports is one of the biggest growth drivers for the sector. There is a proliferation of leagues. The success of IPL has meant that leagues are able to attract both viewers and advertisers.”
He further said that sports as a category is one of the top three, attracting advertisers globally. “Sports content is expensive from an acquisition standpoint but there is a risk reward also as it attracts advertisers.”
Almost all players agree that sports leagues will also keep a close watch not just on the linear platform (television) but also the non-linear channel (digital).
Digital play“Earlier, digital was bundled along with the television feed. However, now leagues and sports bodies are separately calling bids for digital and television. This shows that both dominant market players will have to vie for the digital presence, especially in India, where digital is growing,” said PwC’s D’Souza.
A KPMG-FICCI report on media and entertainment noted that in 2015 cricket continued to be the primary brand puller but various other sporting leagues managed to create a buzz. Brands in India are starting to invest in other sporting activities, which requires a long-term vision and strategy to attract viewers’ sustained interest, it added.
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