Tag: JioHotstar

MUMBAI: By partnering with Nielsen, Uday Shankar and Ishan Chatterjee have revolutionised the way advertising revenue is allocated in media. With all relevant consumption metrics now accessible, brands and managers can accurately measure the return on investment for ads on the JioHotstar platform.     

Previously, advertisers relied on distributor and retailer feedback to gauge the impact of TV or OTT ad campaigns or simply trusted platform-provided figures on watch times and engagement. This lack of transparency led many senior marketing executives to lament that half their advertising budget was wasted—without knowing which half.     

Now, with JioHotstar exposing detailed consumer engagement data, transparency is paramount. Competitors such as Sony, Zee5, and MX Player will face pressure to disclose their own engagement metrics, which are likely to fall far short of JioHotstar’s. With 50 million subscribers, JioHotstar’s numbers will set a new benchmark, challenging the credibility of figures previously reported by other streaming services.     

Will Nielsen’s dashboards validate or debunk existing industry claims? Will this new transparency drive up unit pricing for OTT ad spots or cause a market correction?

Some believe smaller OTT platforms could benefit from JioHotstar’s initiative, as advertisers gain confidence in exploring alternative options.     

“The battle for advertising video revenue is primarily between Alphabet, Meta, and other players, while retail commerce giants such as Amazon, Flipkart, and Swiggy are evolving into media powerhouses, attracting thousands of crores in ad spending. The first two dominate 70 per cent of India’s digital ad spend. Transparency measures like JioStar’s could shift investment from Alphabet and Meta to other video platforms as the ad market expands,” observes an industry expert.     

To capitalise on this shift, Uday Shankar has launched sports channels in multiple languages in both standard and high definition. The true impact of JioStar’s transformation of the sports vertical will likely become evident later this year, as marketers, agencies, cable operators, aggregators, and DTH platforms assess the platform’s potential. Subscription and advertising revenue are expected to surge.

The BCCI has thrived on the IPL’s ever-increasing media rights value, pocketing Rs 48,000 crore in the 2022–27 cycle. However, the IPL has been a loss leader for JioStar, with revenue projections of Rs 4,000–4,500 crore for the 2025 season, meaning profitability remains elusive.     

The recent merger aims to stabilise rights acquisition costs. Previously, Disney Star and Viacom18 engaged in aggressive bidding wars, inflating prices. With one less competitor, prices may better reflect market realities—unless Netflix, Eurosport, Prime Video, YouTube, Zee, or Sony enter the fray, not just for the IPL but for other sports properties, as India’s sporting interests expand beyond cricket.     

(Sources suggest sports administrators are privately expressing concerns about the impending disruption, while smaller sports associations are eager for new opportunities.)     

If rights prices fall to more realistic levels, the entire ecosystem will feel the effects. BCCI and ICC will have less revenue from central media and broadcast rights pools, reducing payouts to team owners. Consequently, player salaries will also decline as team owners rationalise spending. The days of cricketers commanding double-digit crore salaries, as Virat Kohli, Rohit Sharma, and Hardik Pandya have, may be numbered.     

The sports sector is on the brink of a transformation. On the infrastructure side, on the broadcast side, on the talent side – it is all waiting to explode. Production quality, engagement, and interactivity will reach unprecedented levels. It only took a nudge from the likes of Uday Shankar, Akash Ambani, and Nita Ambani. As the saying goes, the match isn’t over until it’s won—or lost.