Shankar Discusses Cricket Rights, Media Evolution, and JioStar’s Vision
Mumbai: Uday Shankar, Vice Chairman of JioStar, which holds the TV and digital rights for IPL and ICC events, raised questions about the sustainability of aggressive bidding for cricket rights. Speaking to Business Today, he remarked, “Sports bodies worldwide thrive on the passionate loyalty of fans and the fear of missing out (FOMO) among media companies. We no longer suffer from FOMO. If we choose to skip bidding for the next ICC rights cycle, it won’t impact our business.”
While cautiously optimistic about the stabilization of cricket rights’ skyrocketing valuations, Shankar acknowledged the unpredictable nature of the bidding process. “Every bidding war I’ve entered has had me hoping for sanity, yet there are always ‘drunk sailors’ who drive prices higher,” he quipped. “I hope for a market correction, but cricket rights remain increasingly expensive.”
Shankar highlighted the strength of JioStar’s diversified content portfolio, spanning drama, movies, reality shows, and cricket, which provides flexibility in strategic decisions. “We don’t have to be desperate to bid for every single right,” he asserted.
While IPL continues to be the crown jewel, Shankar admitted the financial strain associated with acquiring high-value cricket rights, especially for ICC tournaments. “There are significant financial commitments tied to cricket rights. To address this, we must grow the market and innovate in advertising and monetisation. Regardless of the cost, we remain committed to servicing these rights,” he stated.
The recent investigation by the Competition Commission of India (CCI) into JioStar’s consolidation of cricket rights has sparked industry debate. Addressing these concerns, Shankar dismissed fears of market dominance as “overrated,” calling criticism of Disney and Reliance’s control over these rights “somewhat uninformed.” He noted the short duration of sports rights deals in India, typically lasting three to five years, as a mitigating factor.
Shankar emphasized the evolving nature of competition, cautioning against clinging to traditional market definitions. “Media companies are no longer just competing among themselves. The entry of external players adds pressure,” he explained.
In conversations with Bloomberg and Financial Times, Shankar elaborated on the synergy between Reliance and Disney, emphasizing how the partnership combines Disney’s global content with Reliance’s market penetration in India. He pointed to digital transformation and content localisation as key strategies to capture India’s diverse audience.“India is like a continent with its own unique media consumption patterns. Our goal is to leverage this diversity to enhance reach and engagement,” he said, stressing the importance of understanding regional preferences and harnessing the power of digital platforms.
Shankar also dismissed the notion of television’s decline, asserting, “Television in India is far from dead.” He highlighted a hybrid strategy combining TV and digital platforms, reflecting the country’s unique media consumption trends. “Connected TVs and mobile devices are on the rise, but traditional TV still holds a strong base here.”
Acknowledging the dominance of Google and Meta in digital advertising, Shankar underscored the importance of innovation to carve a niche in this competitive environment. “Most digital ad revenue goes to Google and Meta. We need to pivot and build a sustainable business,” he said.
Addressing concerns about job losses due to the merger, Shankar assured that JioStar’s “aggressive growth agenda” would help absorb most of the workforce. “JioStar will be a talent magnet,” he affirmed, highlighting the company’s focus on attracting and retaining top talent.
This merger, he concluded, is not just about consolidating assets but creating value for content creators, advertisers, and consumers, promising diverse, high-quality content and enriching viewer experiences.