While the market has gone slow amid recession fear, Disney, which has shared its first rate card for Indian Premier League (IPL) 2023, is believed to have increased the sponsorship and ad rates by up to 10% for this season.

Though for the broadcaster, this may be a conservative number compared to the last two seasons when the rates jumped by almost 15-20%, media experts are wary if even a 10% hike will be sustainable at a time when the market is both tight and tense.

Disney Star, when contacted, refused to comment on the development.

Disney Star India won the TV rights for IPL (2021-27 cycle) at Rs 23,575 crore in 2022. The broadcaster had paid Rs 16,347.5 crore in 2017 for a combined bid for TV and digital rights for the 2018-22 cycle, which means they paid approximately 36% more in 2022. So, if Disney Star paid much higher to secure the media rights, they must raise advertising rates in order to break even. Industry experts had initially speculated that the ad rates for IPL’s next season should double but that was before recession and the Russia-Ukraine war. The ad rate for IPL 2022 was Rs 16.5 lakh-Rs 18 lakh per 10 seconds, and the ad rate for IPL 2021 is Rs 14-15 lakh per 10 seconds. 

"A lot also depends on market conditions and, of course, what IPL delivers. While there is no doubt that the IPL provides the best in the country, the big question that marketers and advertisers will ask themselves is whether it is worth that price," said a senior media planner who did not wish to be named.

He explained that previously, the cost per match, including digital rights, was approximately Rs 54 crore. But this year, the price per match is Rs 57 crore only for TV, so there is a 20% premium, and on digital, prices have risen by 60-70%. That's where a 90-100% hike is coming, he shared. 

Another media buying head of a leading media agency explained that the broadcaster has paid approximately 20% more for television rights, which means they have to hike rates by 20-25%. “The price gradually rises over five years, with an average increase of 20%. That doesn't mean they have to raise the price by 20% every year.”