WPL thrives as IPL faces major valuation decline; Mumbai Indians beat CSK once again

The Indian Premier League (IPL) has seen a significant decline in its overall ecosystem valuation for the first time in recent years.

A study by D&P Advisory revealed that the IPL's business enterprise value has dropped by 10.6%, sliding from a staggering ₹92,500 crore in 2023 to ₹82,700 crore.

This decline largely happened due to the emerging challenges in the broadcasting system, which could pose serious issues for the IPL in the coming years.

There is a major shift in the Indian broadcast market following the merger of Disney Star and JioCinema, creating a monopoly situation.

IPL's valuation drops while Women’s Premier League thrives

This merger has significantly changed the competitive environment, which previously fueled aggressive bidding wars for IPL broadcast rights.

The last rights auction in 2022 saw fierce competition between Disney Star and JioCinema, ultimately earning the BCCI a massive INR 48,390 crore in a five-year deal.

However, with the two entities now merged, future broadcast cycles are expected to see less competition and potentially less lucrative bidding for the rights.

The report also mentioned that the failed merger of Sony-Zee has further changed the market dynamics for broadcast rights.

Had the merger succeeded, they would have provided a strong challenge to Disney Star and JioCinema, ensuring a three-horse race for the IPL broadcasting rights.

Now, Sony and Zee will struggle to challenge the Disney-JioCinema juggernaut, reducing the competition.

Interestingly, while the IPL ecosystem faces challenges, the Women’s Premier League (WPL) has seen positive growth.

The WPL ecosystem value has risen by 8%, increasing from INR 1,250 crore in 2023 to INR 1,350 crore, hinting at a bright future for women's cricket in India.

Future of IPL media rights uncertain as competition fades

D & P Advisory’s report stated: “This narrowing competitive field may stifle the aggressive bidding that has historically driven up the media rights prices. The combined entity would have been in a stronger position in bidding for the IPL broadcasting rights in the future and would have given a strong competition to Disney and Jio to acquire the rights, making it a three-horse race.”

Furthermore, the report also claimed the hesitation of OTT platforms like Amazon, Apple, and social media giant Meta to invest in the IPL, despite the Indian league having almost the same stature the global giants like the NBA and NFL have in terms of media rights costs.

The report further noted, “Although these tech giants have made inroads into other sports leagues like the NBA, NFL, and EPL, the unique monetization of the Indian market and the IPL's reliance on advertising and subscription models pose significant hurdles.”

'TV remains more cost-effective for consumers'

It is also being said that the future of IPL broadcast rights may face a more cautious bidding process due to the lack of intense competition.

The era of skyrocketing bid prices driven by fierce rivalries among broadcasters might be coming to an end soon, which will affect the growth of IPL's media rights valuation.

The report added, “While TV remains more cost-effective for consumers, the landscape is evolving. Although IPL matches are free of charge on OTT platforms, the cost per GB of data for streaming is approximately Rs 6. This affordability has democratized internet access across rural and urban areas, fostering digital inclusivity and fundamentally changing the content consumption patterns.”

Mumbai Indians (MI) leads IPL franchise branding rankings

In terms of franchise branding rankings, the Mumbai Indians (MI) remain at the top despite their poor season earlier this year.

The franchise is known for its resilience and knack for identifying and developing young talent, making it the only franchise to have won both the IPL and WPL.

Following the MI, the Chennai Super Kings (CSK) is ranked the second brand in the IPL, thanks to the influence of legendary MS Dhoni.

The Kolkata Knight Riders (KKR) secured the third spot, largely due to the impact of Shahrukh Khan, while the Royal Challengers Bangalore (RCB) are ranked fourth.