Banking on cricket's popularity
Star TV, the broadcaster in India, have spent $2.9 billion in buying broadcasting rights and now they have decided to venture into sponsorship rights as well. Surajeet Das Gupta, in the Business Standard, finds out why the broadcaster is pumping so much money into the game.
But the risks come with immense potential for growth for those who have the cash to stay put. To begin with, despite the criticism and fears, cricket constitutes over 10 per cent of the annual TV advertising pie (currently estimated at around Rs 14,000 crore), or Rs 1,400 crore, and in 2011, when IPL and the World Cup were held, it raked in over Rs 2,000 crore in revenues. Also unlike general entertainment channels (which draw 60 per cent of their revenues from advertising), subscription constitutes for over 60 per cent of a sports channel's revenue. So, more viewers mean more revenue through subscription.