Mumbai: The Indian sports media market is expected to grow to over $13.4 billion by 2027, as per a report by investment consultants Anand Rathi Advisors (ARAL).
The report finds that the global sports media rights market was estimated at $52.1 billion in 2021. Considering that the Indian sports media market was estimated at ~$1 billion in 2020, it shows a tremendous potential for growth in future, according to the report by investment consultants Anand Rathi Advisors.
The share of cricket in the global media rights mix grew from 2.7 per cent in 2019 to 3.0 per cent in 2020. However, football continued to occupy pole position in terms of media rights investments with 42 per cent share, earning just under $20.8 billion in 2021.
The Indian sports sector has seen a total of $4 billion in terms of investments between 2015-2021, out of which 30 per cent of the investments have gone to acquiring media rights. Over the past ten years, Disney-owned Star India has invested nearly $10 billion in cricket broadcasting rights. In 2013, Star India invested $325 million in the Indian Super League (ISL), while it recently renewed its Pro Kabaddi League rights at $24 million a year.
On average, 90 per cent of most-watched broadcasts in India are live cricket. Two other sports on the radar of the Indian consumer are soccer and kabaddi. The Indian Premier League with a record 9 million+ viewership per match has shown the path for successful commercialisation of sports in India, as per the report. The BCCI securing landmark multi-million-dollar media rights agreements earlier this month evidences the robust growth trajectory of Indian sports, it adds.
The report hypothesizes that the sports industry in India will be driven by its gigantic youth population of 400 million and rapidly improving economic conditions.
“At Anand Rathi, we aim to provide thought leadership and information that will assist the investment community in identifying macro trends and compelling investment ideas in consumption driven niche segments. In this regard, we have lined up a host of informative reports that will be released periodically,” said Anand Rathi Advisors CEO – investment banking Samir Bahl.
“We have taken a deep look at the Indian sports sector. We are confident that our report would provide potential investors with an incisive look into the potential of the country’s sports economy. We believe that it is poised for a giant leap. Undoubtedly, India would soon become a sporting superpower,” added Anand Rathi Advisors director – investment banking Atul Thakkar.