Quote from: JSRAW on September 07, 2022, 09:41:05 AM

Quote from: Sithara007 on September 07, 2022, 07:29:43 AM

Quote from: JSRAW on September 07, 2022, 06:47:17 AM

Quote from: Sithara007 on September 07, 2022, 01:46:02 AM

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In my hometown, which falls within the tier-2 category, I have huge number of people cancelling their cable TV subscription and going for OTT platforms. Nowadays people don't care spending a few thousand rupees to watch quality stuff. Disney-Star paid $250 million per year last time, and that was in 2014. 8 years have passed and I would expect the rates to go up by 3x-4x, given the rapid growth in Indian consumer wealth. My conclusion is that Disney-Star paid a fair amount, while Sony and Reliance under-estimated the bid.

Agree with the former part of your comment.

for the latter, I guess it would make sense when all numbers are out from the ICC officials in DEC. IMO other competitors didn't actually underestimated anything, they just wanted an e-auction and Disney was desperate to get some content for Hotstar for obvious reasons.

Until a couple of years back, Hotstar was ahead in Sports OTT market by a huge margin. Now they are facing stiff competition (not just from Sony LIV, but also from minor competitors such as Fancode). Platforms such as Sony Liv do have higher quality and variety compared to Hotstar. And in the next 4-5 years I am sure that OTT will grow much bigger than the cable TV segment (especially for Sports), and Hotstar wants to cling on to the market share at any cost. And given the huge premium they paid for the Indian subcontinent, I won't be surprised if rest of the world goes for more than $1 billion.

As mentioned in my previous post that Hotstar does have a monopoly in OTT market, close to 60 Million paid subscribers so no argument there whatsoever.

Let me put it this way, why i think they overpaid (not saying that they can't make money, just focusing on overpaid issue)

- Do you think that casual or even hardcore cricket fans watch every match in the ICC tournament? 99.99% would say no because fans love to watch their respective team (sometimes they even miss the action) and marquee, knockout encounters like Semifinals/ Finals.

-There are total of 179 matches in 4 ICC tournaments and India is playing 26 matches in 4 ICC tournaments then we have additional 8 semifinals and 4 finals (knockouts).

- From the broadcaster's point of view if they are targeting the Indian market only, then they have only 26 (Ind) + 8(Semis) + 4(finals) = 38 Important matches out of 179 in the ICC tournaments.

- If we look at important matches only (38) then according to $3.02 Billion bid it every match is worth close to $80 Million.

- And if we are looking at every ICC match which is 179 then every game is worth approx $16.8 Million. Point to note that 1 IPL match worth is $13-ish million, that's a recent benchmark.

Remember 179 - 38 = 141 non India/ non knockouts.

Now tell me which broadcaster will pay close to $17 million bucks for Aus vs SL, Pak vs SL, SA vs BAN or even Eng vs Aus for Indian or any market?

If what you say is true and your numbers are correct then ICC is not taking care of small accociate members. It is like 15-20x yearly budget for us small counties.

Maady

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