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Vibhor Gauba, Deal Advisory Associate Partner, KPMG India, delivered the keynote address at the inaugural e4m GroupM Let’s Play Sports Marketing Summit.
The speech delved into the recently published and acclaimed CII-KPMG report on the state of the Indian sports broadcasting industry in 2022, recent successes and future hopes. According to that report, the sports TV broadcasting segment is calculated at Rs 7,560 crore in 2022 and the digital OTT sports sector is estimated at around Rs 1,970 crore, bringing the overall revenue of sports broadcasting to Rs 9,530 crore. The sports broadcasting segment alone is expected to grow to Rs 9,830 in FY26, increasing at a steady CAGR of 7%.
“We looked at this sector through two lenses. And considering how the conversation has become more and more dominant since Jio introduced its data plan in late 2016, from a digital angle We also investigated,” he said.
Gauba continued to unravel how concerns grew about the rise in cord cuts, the death of several genres of television, and other similar industry concerns.
According to the latest BARC data we have, there are now 210 million households, with an overall TV penetration rate of nearly 70%. I mean, 90 million people have never had a TV, so there’s still a big gap,” he elaborated.
To bring out more facts from its data points, the report found India’s rural households pegged at about 60% compared to other Southeast Asian countries with similar GDP measured at purchasing power parity. The penetration rate was between 80% and 95%.
“Obviously, India’s actual GDP is slightly lower than those of these countries, so it is unlikely that we will reach these levels, but it is possible to increase TV penetration to 70-80%. is very achievable,” said Gauba.
As for cord cutting, Gauba acknowledged the reality that a small number of households and affluent people are moving away from linear TV, but the numbers are too small to pose a threat to TV. Only 0.5 to 0.7 households in India.
Noting that there will be seamless 5G connectivity across India and only one data package is required, Gauba said: Watch 100’s of his FTA channels. So while 5G will have an impact on cord cutting, there won’t be much of a difference in the number of households with TVs, with he going from 10 million to 15 million households cutting cords in the next four years. It’s not too much. ”
He added that it is interesting to note that from 2019 to 2022, when digital consumption surged nationally, TVs were able to maintain a 52-54% market share.
“One very interesting data point, especially from an advertiser perspective, is the 17% increase in New Consumer Classification System (NCCS) A and B penetration in TV households. I didn’t,” Gauba said.
He added that the amount of original content on TV is unmatched. It’s not something digital can quickly cover. ”
“So TV has taken hold and the sports category is still one of the most popular and most profitable genres. If you look at the Super Bowl in India, the IPL, it reached 400-420 million people. That’s more reach than the combined reach of the other top properties we’ve looked at: KBC, Bigg Boss, Kapil Sharma, Khatron keKhiladi, and Shark Tank, all in the two months running. We have more reach than our properties combined and have doubled the viewing time,” Gauba explains.
“Looking at concurrent viewers, i.e. viewers watching on TV versus those watching OTT, watching the India vs. Pakistan match over the IPL, the T-20 World Cup 2021 match TV We had 116 million viewers, versus 12.8 million digitally,” he said.
This means that even though digital adoption is growing at a greater exponential rate, TV will continue to overwhelm digital in the near future because TV has a much larger base.
“And while the IPL is clearly the biggest fortune, for all the money it has brought to the sector, many events outside of cricket have also attracted attention. Mainly PKL and ISL. As big as the IPL. Maybe not, but they cater to different sections of the audience, each reaching between 150 million and 300 million viewers in a given season,” Gauba said. is not going away any time soon, it will only increase in terms of brand opportunities. Advertisers, media industry.
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