In my view the success of a tournament depends upon the quality of the matches played and how long it can attract the fans to tune in and how long. If the tournament becomes bigger, you cannot expect the viewers sticking through all the matches and it is all connected to the revenue and it is directly linked to the advertisement the media gets during the match. If the viewers goes down it will affect the revenue market as well. If media channels are not getting the advertisement they expect they wont be shelling out huge amounts for broadcasting rights.
I don't agree. Right now, the viewership is disproportionately concentrated in the mega cities such as Chennai and Mumbai. If the number of teams are increased, then there will be teams from some of the smaller cities such as Udaipur, Kanpur, Patna and Ranchi. This will increase the revenues. The revenue per team may decline (only in the short term), but the total revenues will increase. BTW, my 4-month estimate was perhaps a bit too large to accommodate. A three-month window should work fine.
If the number of teams is increased, the number of matches will definitely increase. BCCI will be able to earn extra money from broadcasting. At the same time the number of visitors will increase. BCCI will be able to earn money from this. Moreover, the domestic players will get a chance to play. This will make it easier for BCCI to find new talent.