Private broadcasters (mainly Disney Star and Viacom18) in India are worried about the potential impact of Prasar Bharati, the state-owned broadcaster, launching its own OTT (over-the-top) platform. While details are still emerging, the inclusion of sports streaming on the platform could significantly disrupt the current sports broadcasting landscape.
Free vs Paid: Clash of business models
The primary concern for private broadcasters is the potential sharing of sporting event feeds with Prasar Bharati’s OTT platform. Currently, broadcasters pay hefty sums for exclusive rights to major sporting events, like ICC/cricket tournaments. These rights allow them to charge premium advertising rates, making sports a major revenue generator.
However, if forced to share feeds with a free-to-reach OTT platform, private broadcasters fear losing their viewership and advertising revenue. This could lead to a situation where viewers have access to free, high-quality sports content on Prasar Bharati’s platform, with no incentive to pay for subscriptions on private OTTs.
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Impact on BCCI, ICC
The financial implications could extend beyond broadcasters. Sporting bodies like the BCCI (Board of Control for Cricket in India) and ICC (International Cricket Council) rely heavily on the revenue generated from selling broadcast rights.
If broadcasters struggle to monetise these rights due to competition from a free OTT platform, their bidding power could be weakened, potentially impacting the amount of money available for sports development and player salaries.
“While we may not have a direct say in the matter if broadcasters are unable to monetise the sports rights, it will affect their bidding power, which in turn will reflect in the revenues of not just the BCCI, but all the sporting bodies,” the BCCI official told Mint.
Uncertainties remain around Prasar Bharati
While the inclusion of sports on Prasar Bharati’s OTT platform remains unconfirmed, private broadcasters are understandably nervous. Further details regarding the platform’s business model and content strategy are also awaited. Prasar Bharati has hinted at offering free content initially and showcasing diverse programming that reflects Indian culture.
The upcoming launch of Prasar Bharati’s OTT platform has certainly shaken things up in the Indian streaming market. How the platform will operate and the content it offers will be closely watched, particularly by private broadcasters who are facing a potential challenge to their dominance in the lucrative sports streaming market.
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