JioCinema To Take On Facebook, Youtube In Digital Advertising Via Free IPL Streaming: Report

The Mukesh Ambani-led Viacom18’s decision to stream the Indian Premier League (IPL) for free on JioCinema will give a big boost to the subscriber base of the platform and may help it in competing with the likes of YouTube India and Facebook in the digital video advertising market, as per a report by brokerage firm Elara Capital.

After acquiring the digital streaming rights for the marquee cricket tournament for a whopping INR 23,758 Cr, Viacom 18 is reportedly planning to stream IPL games for free on JioCinema. Its rival Disney Star, which had the digital rights for IPL before, hosted the cricket tournament behind the paywall.

According to Elara Capital, the move will push JioCinema’s subscriber base towards new records and help it compete with the likes of YouTube India, which has a monthly average user (MAU) base of 520 Mn.

“It would further help JioCinema to cross-sell its other content offerings and assist with mobile subscriber retention. This, in turn, can help Jio Cinema compete with social media platforms, such as Facebook and Instagram as well as YouTube, which has an 80% share in India’s video advertising segment, apart from mere broadcaster OTT platforms, which have a smaller share,” the report said.

As per GroupM’s TYNY report, India’s ad spend is estimated to grow 15.5 per cent in 2023 to reach INR 1,46,450 Cr. Of this, digital will lead the ad spending at 56% or INR 82,542 Cr.

Viacom18’s Plans For Its First IPL Season

As per a Bloomberg report, Viacom18 is eyeing advertising sales that can be generated from offering the content to as many people as possible for free. Earlier, it was reported that the company was targeting 550 Mn viewers for the upcoming IPL season.

Interesigely, Viacom18’s intent to reach the furthest corner of India is clearly reflected in its decision to offer commentary, score, and statistics to viewers in 12 languages, including Hindi, English, Telugu, Tamil, Gujarati, and more.

For a better viewing experience for users, the company is also planning to offer 4K streaming at 60 FPS, compared to 1080p content offered by Disney+ Hotstar. Moreover, the users will be able to switch between different camera angles.

However, Elara Capital also said that the move of free streaming has a lot of risks attached to it, as return on investment may not be easily recovered. While the strategic initiative to scale up Jio subscribers and JioCinema customer base may be an advantage, poor user experience on the Jiocinema app may turn out to be a big risk for user acquisition, user retention and content monetisation.

It must be noted that the first match of FIFA World Cup 2022 in Qatar saw the JioCinema app facing glitches, with users complaining on social media platforms about the broadcast quality.

The entry of Viacom18 into sports content has changed the dynamics in the over the top (OTT) ecosystem of India. Until now, sports broadcasting in India was dominated by Star India and Sony Pictures Networks India, which helped their respective OTT apps Disney+Hotstar and SonyLIV in acquiring new users. Now, the Reliance-owned media behemoth is looking to disrupt this ecosystem.

The move to stream IPL matches for free would have a negative impact on the OTT market, according to Elara Capital. “The average revenue per user (ARPU) may drop down further or remain stable in a market where most OTT platforms are already available at cheap prices vs global averages,” it said.

According to a report by media consulting firm Ormax Media, India currently has about 423 Mn OTT users.