Cricket Boards Are Pricing Out Their Biggest Market
Cricket, the beloved sport that captures the hearts of millions around the world, is facing a critical juncture. Uday Shankar, the vice-chair of JioStar, a massive Indian platform with over 500 million viewers and a significant investment in cricket rights, believes that the sport is at a crossroads. The recent auction of the 2022 Indian Premier League (IPL) cricket tournament rights saw a staggering value of $6.2 billion, making it the second-highest per-match valuation globally, only behind the NFL.
Shankar raises a valid point about the sustainability of such high rights values. With a shrinking buyer universe and increasing competition, he questions the rationale behind paying the same value for matches between different teams. He argues that matches involving popular teams like India, England, or Australia should command a higher price compared to matches involving lesser-known teams like Afghanistan, Bangladesh, or Sri Lanka. This discrepancy in value could potentially lead to a pricing crisis in the market.
JioStar, described by Shankar as the goose that lays golden eggs, is contemplating its future commitment to cricket. The scheduling framework of cricket’s Future Tours Program is a particular source of frustration for Shankar, as it appears outdated and in need of a revamp. He emphasizes the need for global cricket administrators to come together and address these commercial challenges to ensure the sport’s sustainability.
Analysts are already predicting a decline in rights values for the next cycle of cricket rights auctions in 2028. The lack of competitive tension following the merger of Viacom18 and Disney’s Indian operations has dampened the dynamics that drove the 2022 price surge. This projection highlights the need for a strategic reassessment of cricket’s commercial landscape to maintain its financial viability.
Shankar’s journey from a left-leaning student at Delhi’s Jawaharlal Nehru University to a pioneering journalist and media executive reflects his unwavering determination to succeed. His pivotal role in transforming Star India through regional expansion underscores his visionary leadership in the media industry. As cricket navigates these uncertain waters, Shankar’s insights serve as a wake-up call for the sport’s stakeholders to adapt to changing market dynamics and secure its long-term future. He took a leap of faith by launching a Kabaddi League when no one believed in it. Despite facing skepticism from a friend who deemed him arrogant and predicted that nobody would watch, the sport now boasts a massive following of 450-500 million people. This success reflects his belief in providing opportunities for everyone to achieve a better life, transcending social classes.
Apart from his involvement in Kabaddi, he co-founded Bodhi Tree, an investment platform with James Murdoch, backed by Qatar’s sovereign wealth fund. Bodhi Tree has made significant investments in media and education, particularly through Allen Career Institute, which helps prepare thousands of students for India’s competitive entrance exams. The platform aims to digitize access to education, enabling individuals from rural areas to excel in fields like medicine and engineering.
When discussing Bollywood, he highlights the industry’s insularity and the need for fresh perspectives to thrive. Drawing a parallel with cricket’s inclusive approach to talent, he emphasizes the importance of diversifying talent pools in filmmaking. He believes that Bollywood must break free from its conventional norms to captivate audiences and compete with regional film industries.
In terms of media distribution, he acknowledges the shift towards connected TV sets outnumbering pay TV households in India. While he prioritizes quality content over delivery modes, he emphasizes the untapped potential in monetization strategies. By leveraging AI for cost-effective content production and data-driven revenue generation, he envisions a transformative shift in the media landscape.
Despite his involvement in technology and creativity through platforms like JioStar, he maintains a journalistic mindset rooted in asking probing questions. This approach, honed during his reporting days in challenging environments, guides his decision-making and keeps him grounded amidst technological advancements.
Ultimately, his journey from launching a groundbreaking sports league to spearheading innovative media ventures underscores his commitment to fostering growth and inclusivity across diverse industries. His unique blend of entrepreneurial spirit and journalistic ethos continues to drive his success, shaping the future of media and entertainment in India.
