Why India’s streaming wars are moving into sports arena

Most streaming platforms are betting big on sport in the hope of replicating the success that Hotstar saw with IPL between 2017 and 2022. Over-the-top (OTT) video-on-demand services require properties that would bulk up their subscriptions which are now past their peak growth rates of Covid lockdowns

After films, web originals and international content, live sports are now at the centre of the war between digital streaming platforms in the country.

With an eye on expanding their subscriber base, both broadcaster-owned and independent streaming services such as Disney+Hotstar, JioCinema, SonyLiv and Amazon Prime Video are going all out to sign up big-ticket as well as small sports properties. (REUTERS)

With an eye on expanding their subscriber base, both broadcaster-owned and independent streaming services such as Disney+Hotstar, JioCinema, SonyLiv and Amazon Prime Video are going all out to sign up big-ticket as well as small sports properties.

In the last few months, Sony Pictures Networks India, now called Culver Max Entertainment Private Ltd, has been in an overdrive to beef up its sports slate both for TV channels and its digital service SonyLIV. In August it signed a three-year deal for US Open to televise and stream tennis across the Indian subcontinent. The broadcaster also extended its partnership with England and Wales Cricket Board (ECB) for the exclusive television and digital rights for six years up until 2028. For cricket’s Lanka Premier League, its digital rights are limited for streaming in India and Sri Lanka.

While Prime Video streamed India’s New Zealand tour in November, let’s not forget Disney Star’s aggressive bid four months ago to bag the TV and digital rights for all International Cricket Council (ICC) events from 2024 to 2027 at an estimated $3 billion. The company, however, sublicensed the TV rights to Zee Entertainment to recover part of its investment. In a bidding war in June, Disney Star lost the Indian Premier League (IPL) digital media rights to Reliance Industries-backed Viacom18 for ₹20,500 crore. More recently, Viacom18 used Reliance’s JioCinema app to showcase Fifa World Cup being held in Qatar and also signed a seven-year partnership with Cricket South Africa for exclusive digital and TV rights for all international cricket from 2024 to 2031.

Most streaming platforms are betting big on sport in the hope of replicating the success that Hotstar saw with IPL between 2017 and 2022. Over-the-top (OTT) video-on-demand services require properties that would bulk up their subscriptions which are now past their peak growth rates of Covid lockdowns.

Sports is the biggest hook to acquire new customers. Media experts believe streaming services have the dual objective of getting content that brings new subscribers and getting content that keeps the existing subscribers engaged. For instance, smaller shows and mid-range films on the platform will add to the library and keep the existing subscribers satisfied.

A sports property, especially in cricket, is a very wide funnel to net new subscribers. A person familiar with Viacom18’s sports plans said FIFA World Cup being streamed on JioCinema has pushed the app into affluent, urban homes and phones, opening up a new consumer demography which would have not downloaded the app otherwise.

Meanwhile, a worried Disney+Hotstar had a crucial two-hour long meeting earlier this month to minimize the impact of losing IPL digital rights. Though media analysts predict that 15 million users may exit Disney+Hotstar in the absence of IPL, company executives said of their 54 million subscribers, not more 5 million are expected to leave the platform as they strengthen their content slate. “Sports, at best, acts as a hook for you to draw the subscriber in but over time, in order for you to create stickiness with that subscriber, you’ve got to offer him everything else,” said a company executive not wanting to be quoted.

Streaming services are also running after sports as digital subscribers will continue to grow. A media expert said that there are 400 million smartphones in India and that number is predicted to see a further rise. “So potentially you can have 400 million OTT connections,” he said. Whereas the subscription-led video-on-demand (SVoD) users or the paid users have not yet crossed even 100 million. A new report from media consultancy Ormax Media pegs India’s paying (SVoD) audiences at 49 million.

“Clearly, sports can be used for converting the free AVoD (advertising-led video-on-demand) users to SVoD users. There is a big market waiting to be tapped, given that digital is the future of broadcasting,” he added.

Additionally, a new KPMG report on sports broadcasting also said that digital revenues for sports are likely to see robust growth though they will still be half of the TV sports revenue by FY26. The digital revenue for sports is estimated to grow from ₹1,540 crore in FY21 to ₹4,360 crore in FY26, at a CAGR of 22 per cent. This will be driven by organic growth in the number of OTT viewers in India, as well as an increase in consumption of sports on OTT, fuelled by the convenience of anywhere viewing.