Introduction:
The Indian Premier League (IPL), one of the most popular cricketing events in India, witnessed a significant shift in its streaming platform in 2023. JioCinema, a leading digital platform, made a bold move by offering free streaming of the IPL matches, which proved to be a game-changer for the platform. According to reliable sources, JioCinema’s official streaming partnership for Tata IPL 2023 generated an impressive advertising revenue of approximately Rs 2,300-2,500 crore. In comparison, industry insiders estimated television ad revenue to be around Rs 1,800-2,000 crore. This strategic decision by JioCinema had a significant impact on its revenue and viewership, although it came at the cost of losing subscription revenue.
JioCinema’s Triumph:
In the previous year, Disney+ Hotstar, the former streaming rights holder for IPL, had earned Rs 1,100 crore in ad revenue. However, JioCinema managed to surpass this figure by a considerable margin. By making IPL matches accessible for free, JioCinema attracted a larger audience and consequently witnessed a surge in advertising revenue. The platform’s ad earnings for the 2023 IPL season amounted to an impressive Rs 2,300-2,500 crore.
Implications for Disney+ Hotstar
Disney+ Hotstar’s ad revenue for IPL in 2022 was around Rs 1,100 crore, as reported by Kotak Institutional Equities. However, in the previous year, Disney Star had earned a staggering Rs 4,000 crore in ad revenue from the annual cricketing league. By placing the IPL matches behind a paywall, Disney+ Hotstar was able to boost its paid subscriber base significantly. For instance, during the IPL season in 2022, Disney+ Hotstar’s paid subscriber count grew from 50.1 million in the January-March quarter to 58.4 million in the April-June quarter. Viewers had the option to subscribe to various plans, such as the basic mobile-only subscription or the more comprehensive plan for streaming on televisions and multiple devices.
JioCinema’s Sponsors and Reliance Group Influence
During IPL 2023, JioCinema’s prominent sponsors included JioMart (Co-powered by), Jio (Associate Sponsor), and AJIO. Notably, all three sponsors were part of the Reliance group, which holds a significant stake in JioCinema. This strategic alignment of sponsors within the Reliance group further contributed to JioCinema’s success during the IPL season.
Impact on Advertising Strategies
Media buyers observed that brands, operating in a tough market, adopted a more focused approach to spending their ad budgets. Rather than dividing their budgets across multiple mediums, many brands concentrated a substantial portion of their ad spend on a single medium. This trend was fueled by the effectiveness of platforms like JioCinema, which provided high viewership and engagement. Consequently, digital platforms witnessed a surge in ad spending, with JioCinema’s advertising revenue surpassing the previous year’s figures.
Viewership and Engagement
JioCinema experienced impressive viewership figures during the IPL 2023 season. The peak concurrency for the IPL final reached 3.2 crore viewers. JioCinema registered a total of 1,700 crore video views and reached 12 crore unique viewers throughout the 16th edition of the IPL. In comparison, Disney+ Hotstar achieved its highest concurrency of 2.5 crore viewers during an ICC Cricket World Cup semi-final game in 2019.
Television viewership, led by Star Sports, also soared during the IPL. The clash between Gujarat Titans and the Mumbai Indians (Qualifier 2) recorded a peak TV concurrency of 6.1 crore viewers. Star Sports achieved a viewership of 49.6 crore and a staggering 40,902 crore minutes of consumption until the finals. This marked the highest viewership recorded for IPL by the channel.
Conclusion:
JioCinema’s decision to offer free streaming of the IPL matches in 2023 proved to be a resounding success. The platform witnessed a substantial increase in advertising revenue, surpassing the figures earned by its predecessor, Disney+ Hotstar. Although JioCinema forwent subscription revenue, it attracted a massive audience and enjoyed the patronage of significant sponsors, including Reliance Group entities. By concentrating ad budgets on single mediums, brands optimized their spending and achieved better results. The IPL season also witnessed impressive viewership figures, both on JioCinema and television platforms like Star Sports. Overall, JioCinema’s gamble paid off handsomely, positioning it as a formidable player in the digital streaming market.
APPPL COMBINE 