At the inaugural e4m GroupM Let’s Play gaming conference, Vibhor Gauba, Associate Partner – Deal Advisory at KPMG India, delivered a keynote address.
The address focused on the recently launched and highly acclaimed CII-KPMG report on the state of the Indian sports broadcasting industry in 2022, its recent successes, and its future prospects. According to the report, the sports TV broadcasting segment is estimated to be ₹ 7,560 crore in 2022, while the digital OTT sports segment is expected to be around ₹ 1,970 crore, and the total sports broadcasting revenue will reach ₹9,530 crore. According to the same report, the sports broadcasting segment alone is expected to grow to R9,830 crore in FY26, rising at a steady CAGR of 7 percent.
“We looked at the sector from two lenses, the first one was TV broadcasting. In this sector, the IPL is obviously the biggest asset, and we saw how the game is broadcast on TV and how it can be used effectively. And further, we also looked at it from a digital perspective, because it has been improving discussions since Jio launched its plans in late 2016,” he said.
Gauba went on to explain how there was concern over the rise of cord-cutting, the death of some TV brands and other industry issues.
According to the latest BARC data that we had, we are now in 210 million households, and the TV penetration is around 70 percent, so out of about 300 million households that we have, we have only 210 million. TV, which means 90 million have never had TV, so there is a big difference,” he said.
To get more from the information, the report compared the number of rural households in India with TV, which is about 60 percent, against other countries in South East Asia, which have similar GDPs and Purchasing Power Parity, and found. that they had between 80-95 percent penetration.
“Obviously we cannot reach these levels, because India’s real GDP is a little lower than that of other countries, but the growth of TV to 70-80% is something that can be achieved,” said Gauba.
On the subject of cord cutting, Gauba admitted that this was true because few families and rich people were leaving TV, but the number was too low to be alarmed, they were coming. about 0.5 to 0.7 households in India.
Noting that seamless 5G connectivity across the country, which required only one data package, was still a few years away, Gauba said, “What we must not forget is that TV is the cheapest in India, and at ₹ 153 that’s all it costs to watch channels.” a 100 FTA. So even though 5G will involve cutting the cord, it won’t change the number of households with TVs, and we only see 10-15 million households growing over the next four years.
He also said that it is interesting to note that, between 2019 and 2022, when digital consumption increased significantly across the country, TV managed to maintain its market share of 52-54 percent, as digital entered other media sectors.
“The most interesting thing about the data that we got, especially from the advertisers is that the penetration of the New Consumer Classification System (NCCS) A and B in TV households has increased by 17 percent, so the households that we would have expected to be the first to cut the cord have not yet done so,” he said. Go away.
He added that the amount of content on TV is unparalleled, saying, “If you look at any GEC, you’re getting four or four and a half hours of original content every weekday evening, prime time, and that’s not something digital is going to cover anytime soon.”
“So TV is almost behind, and the sports team is still one of the most popular and money-making genres. If we look at the Super Bowl of India, IPL, we saw that it reached between 400-420 million people, and it is bigger than we can compare with other top properties, what we watched were KBC, Bigg Boss, Kapil. Sharma, Khatron keKhiladi, and Shark Tank. In the two months it’s running, it has more reach than all these, and has 2x the amount of viewing time,” he said. Go away.
“If we look at the concurrent viewers, meaning those who watch on TV and those who watch through OTT, and watch the India vs Pakistan match, which surpasses the IPL, then the T-20 World Cup 2021 match had 116 million users on TV. against 12.8 million on digital,” he said.
This means that TV will continue to be a digital medium in the future, because even though digital adoption is growing, TV has a much larger base.
“And although the IPL is obviously the biggest product, because of all the money it brought into the league, a lot of non-cricket events started to become popular, especially the PKL and the ISL, and although they may not be the same as the IPL, they are not going to be as big as the IPL. It supports different sectors. of audiences and each reach between 150-300 million viewers in a given season,” said Gauba, concluding that TV is not going anywhere anytime soon, and will only increase the opportunities for brands, advertisers, and media companies.
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