As we know, Walt Disney and Reliance media business has merged. It becomes a conglomerate of 108 plus channels and two big OTT apps — Jio Cinema and Hotstar. It owns two film studios. Such a combination reduces the bargaining power of the media buying agencies. It gives tremendous negotiating power to the newly formed entity.
In the area of sports, a virtual monopoly has been created. It has 75-80 per cent sports properties under its belt. It owns IPL’s TV as well as digital rights. It owns rights of ICC cricket tournaments, both TV and digital. It owns rights of domestic cricket events of BCCI. In addition, it owns rights of kabadding league and Wimbledon.
Sports advertising (2022-23) touched revenues of Rs. 7100 crores (TV as well as digital). It benefits marketers by giving increased reach, optimum content costs and efficient operations. At the same time, it creates a monopoly that takes away the pricing leverage.
In 2023, the digital and TV rights were unbundled. It was an opportunity for brands in fintech, retail, e-commerce and edtech sectors. These brands moved towards digital advertising and legacy advertisers continued with TV. Since both digital and TV rights are now under one roof it has converted into a sellers’ market.
In advertising too, the supply-demand dynamics is at work. There was cautious spending in 2023 IPL. There was less ad money in the market and startups were not spending liberally. With many buyers, there is no significant pricing power. The merged entity will not be able to draw advertisers from social media and Amazon. There will be some shift from TV and print.
Print will have reinforced its inherent credibility. There is an opportunity to integrate print and digital audiences.
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