No India-Pak match leaves JioStar facing big ad revenue loss
What's the story
JioStar, the official media rights partner for the International Cricket Council (ICC), could see a 15-20% dip in its total tournament advertising revenue. The potential loss comes after Pakistan's decision to boycott its match against India at the ICC Men's T20 World Cup this month. An India-Pakistan match is one of cricket's biggest draws, attracting premium ad rates due to its record viewership.
Revenue expectations
JioStar's ad revenue target and potential losses
JioStar is aiming for over ₹2,000 crore in ad revenues from the tournament across TV and digital platforms. However, without the India-Pakistan match, it could see a revenue loss of up to 20%. The company's subscription revenue is unlikely to be affected as these deals are annual and fixed-fee based. Major India games like the one against Pakistan command ad rates of ₹17 lakh per 10-second spot.
Clarification sought
Clarifications sought by advertisers
Media planners have said that agencies and brands are seeking clarification from JioStar on the matter. The company has maintained that the Pakistan Cricket Board (PCB) has not officially informed the ICC about its decision yet. On Sunday, the Pakistan government announced that while their team would participate in the tournament, they would boycott the match against India.
Ad adjustments
Possible renegotiation of ad deals
If the India-Pakistan match on February 15 doesn't happen, it could lead to a renegotiation of ad deals. However, some agencies believe it's impossible to make up for the potential loss of reach and impact from such a high-profile match. JioStar has signed multiple sponsors for the tournament including Thums Up, ChatGPT, Emirates, Mahindra and Sting. To offset losses from this marquee clash, they may offer clients alternative ad placements on other sports/entertainment properties.
Revenue implications
Impact on ICC revenues
The absence of the India-Pakistan match could also affect ICC revenues as JioStar may renegotiate its payment terms with the ICC. The broadcaster is expected to pay between $750 million and $1 billion this year for a four-year deal worth $3 billion (2024-27). Any reduction in media rights fees would also impact revenues for the ICC and its member boards, including Pakistan.