IPL brand value marked 26 percent increase from last year
Sony Networks’ biggest source of revenue comes from IPL which can be seen as their ad revenues crossed Rs 1,300 crore this year.
Published - Aug 24, 2017 4:40 pm | Updated - Aug 24, 2017 7:10 pm
Indian Premier League (IPL), a tournament which creates a buzz around the park, with streets blaring horns, getting players from around the world to unite, the numerous controversies and the juggernaut rolls on. In its tenth year, the IPL is an enterprise worth Rs 34,000 crore ($5.3 billion) and has posted a 26 per cent increase in its overall business from Rs 27,000 crore ($4.2 billion) last year.
According to global valuation and corporate financial advisor Duff & Phelps, the Indian domestic T20 league’s overall value has increased 26.19 per cent from previous year, representing a three-year CAGR of 13.9 per cent. IPL last year completed a decade of success and the two big teams that were earlier banned, Chennai Super Kings and Rajasthan Royal will make a return in the 2018 season.
Exorbitant increase from previous year
In an interview with PTI, Indian managing director, of Duff & Phelps, Varun Gupta said, “This IPL season has garnered attention for all the right reasons — a relatively controversy-free tournament, increase in social media engagement, strategic and highly successful marketing initiatives, and compelling on-field performances – all of which affirmed IPL’s standing as the most valuable cricketing league in the world.”
It has to be noted that the brand value of the individual team has approximately risen by 34 per cent on an average in 2017 as compared to 2016. The Mukesh Ambani owned Mumbai Indians top the list with a brand value of USD 106 million. Mumbai Indian’s good run in this year’s IPL has helped them to go past Kolkata Knight Riders and Royal Challengers Bangalore who occupy second and third spot respectively.
Factors contributing to rise
The factors which have contributed to the rise in the value of the individual franchise include increasingly lucrative advertising, broadcasting, and sponsorship deals, reduction in franchise fees beginning with the next season, increased viewership across India and fan engagement and rise in social media activity.
The season also witnessed Gurajat Lion and Rising Pune Supergiant play the tournament for one last time as their two-year contract stand still and the idea of 10-team IPL doesn’t look pragmatic on papers.
“Satellite and digital broadcasting rights are up for renewal later this month and will be keenly watched. The renewed deal is anticipated to be significantly higher than the one signed by Sony nine years ago,” a source was quoted as saying.
45 per cent viewership from rural India
Sony Networks’ biggest source of revenue comes from IPL which can be seen as their ad revenues crossed Rs 1,300 crore this year, while Hotstar ad revenue saw a double hike from the previous year. Lastly, Television viewership has also reached a new stratum with 45 percent of its viewership coming from rural areas which seem to be the biggest plus as far as development is concerned.