Will BCCI Media Rights With Viacom18 Transform The OTT Game?

Viacom18 won in a recent e-auction conducted by the Board of Control for Cricket in India (BCCI), securing media rights for a five-year period, from September 2023 to March 2028 in an INR 5,963 crore deal. However, it raises several points to consider such as the future of sports streaming, content quality, competition in India between OTT platforms, and advertiser's approach towards sports marketing and sponsorships in India.

On the development, Rajat Abbi, VP, Global Marketing, CMO, Schneider Electric India shares his thoughts stating, "The BCCI media rights deal with Viacom18 represents a strategic milestone that is poised to substantially enhance JioCinema's standing in this competitive OTT landscape. With Reliance Infocomm's strong backing, this partnership will not only bring the fans closer to their beloved sport but will also underscore the immense potential of homegrown Indian brands."

Viacom18 To Up-The-Game For JioCinema

With JioCinema gaining ground in the digital content space, and offering a wide range of entertainment options, entering sports entertainment is an ambitious move to gain more subscribers to it.

Karan Taurani, Senior Vice President at Elara Capital states, "It will up the game for Viacom18 in terms of the OTT business. JioCinema already has an AVOD market share of close to 24 per cent because of IPL and other content that they have got in the past. This will increase, potentially making them the market leader and they could have a monopolistic approach as far as sports OTT is concerned because the consumption is very high for sports as a genre on digital platforms because of convenience-led watching. With Viacom18's aggressive investments in content, this will negatively impact competitors."

On the same lines, the impact on other OTT platforms might take charge in a big way. Taurani further said, "This move is expected to negatively impact SVOD platforms like Disney Plus or Sony Liv because JioCinema might continue to offer premium content free of cost. Increased competitive intensity will lead to greater competition for subscribers' attention and revenue."

Jio is supported by a robust alliance and extensive resources, leading to an integrated content network, and adding sports will nonetheless increase its user base on JioCinema.

On the impressive ecosystem, Harikrishnan Pillai, CEO and Co-Founder, TheSmallBigIdea shares, "Amongst the content options, sports is a formidable content format to keep the young aligned, and it will definitely be a critical cog in the long-term strategy for JioCinema."

Viacom18's strategic move aligns with JioCinema's ambitious plans to further solidify its position in India's competitive OTT landscape.

Focusing on consumer acquisition, Mohammed Shahbaaz, Brand Marketing Head, Cult.sport said, "It is definitely a strong consumer acquisition strategy. Sporting events have a large reach with an audience, unlike TV shows which have higher frequency with a relatively smaller audience. As a new platform, they need the reach for advertisers to be interested in spending on their platform, and vis-a-vis with increasing competition among platforms with large reach, it definitely increases advertiser's options in terms of touch points."

Cricket's Enduring Relevance

Despite a 12 per cent increase in the winning bid compared to the previous cycle, cricket's significance appears to have gone down in the past year. With Viacom18's build-up and JioCinema's target group, one can expect an enhanced viewer experience from this partnership.

Damyant Singh Khanoria, Chief Marketing Officer, Oppo India stated, "While the 12 per cent increase in the winning bid represents a marginal change, the bigger picture for Cricket in India remains unchanged. The scale of media investments, stunning valuations, and continued ability to draw audiences underscores Cricket's enduring relevance. Viacom18's bold vision, featuring innovations like free-to-air broadcasts, commentary in 11 regional languages, and multi-camera angles, has redefined the viewer experience. The IPL & BCCI Media rights have propelled Jio Cinema to the forefront, positioning it to become India's leading streaming platform."

Content Quality and Viewer Experience

Following this deal, the expectations of content quality and viewer experience will raise the bar of JioCinema and Viacom18 with its cutting-edge innovations. 

On the viewer experience and content on JioCinema, Shahbaaz commented, "We saw that with the IPL this year, vernacular commentary and new camera angles, Jio innovated on its viewing experience. As advertisers, we do want to connect with the audience in a language that they best resonate with. Jio I'm hoping will provide that option, not just in terms of ads but also in terms of integrated content."

Advertiser's Approach to Sports Marketing and Sponsorships

With the potential to reach a vast and diverse audience through cricket, advertisers are likely to view this as a golden opportunity. 

On advertisers approach towards sports marketing and sponsorships in India, Pillai said, "The AVOD model adopted by JioCinema for sports telecast, becomes an extremely exciting proposition for an advertiser. Brands targeting youngsters across the country tend to miss optimising youth reach in a classic satellite sports telecast deal or because the content is behind the paywall for the digital telecast. Now, the sudden access to the AVOD-consuming young India provides a tremendous opportunity for the advertiser and the platform. This might have a direct impact on the advertising budgets for English, Youth, and Music channels, where I am prempting that money might be pulled out by brands to be diverted here in a more intense manner than it already is. "

The BCCI media rights deal with Viacom18 has set the stage for a transformative period in Indian sports streaming. The coming months will reveal the strategies and innovations that JioCinema and Viacom18 bring to the table in this fast-paced arena of sports streaming in India.