While just a week remains for IPL2024 to kick off, both broadcasters—Disney Star and JioCinema—are maintaining a tight-lipped stance on the mega event, refraining from making any announcements and statements or giving any interviews regarding their offerings or the sponsors they have secured so far.

Despite both the broadcasters releasing rate cards as early as the first week of January, sources indicate that most discussions with the brands are yet to materialize into finalized deals for them. Industry insiders speculate that brands are holding back in anticipation of rate reductions by the broadcasters closer to the IPL. "So far, they have not deviated much from their initial rate cards. Hence, clients want to hold back," noted a senior media planner.

Media planners are hopeful that broadcasters will lower their rates as the pressure to fill the inventory increases closer to the event. However, discussions in the industry suggest that both platforms are encountering difficulties in finalizing deals. "Most clients have put things on hold for now or are engaging in conversations but not closing the deal,” explained a media buying head from an agency.

Considering that JioCinema has maintained its rates from 2023 and has a smaller ticket size, planners argue that digital is slightly better placed when it comes to closing deals. As previously reported by exchange4media, JioCinema has not raised its prices this year. The platform is seeking rates ranging from Rs 200-250 per 10 seconds for mid-roll ads and Rs 250-300 per 10 seconds for pre-roll ads. The only change observed is a Rs 25 increase in the pre-roll ad rate, which was Rs 225 last year. The spot rate for advertising on CTV also remains at Rs 6.5 lakh per 10 seconds.

In contrast, Disney Star has marginally increased rates for the upcoming season. The broadcaster is seeking Rs 71 crore for co-presenting sponsorship and Rs 35 crore for associate sponsorship for HD channels. For SD channels, the broadcaster is seeking outlays of Rs 167 crore and Rs 83 crore for co-presenting and associate sponsorships, respectively. Its spot buy rates are Rs 12.8 lakh per 10 seconds and Rs 5.45 lakh per 10 seconds for SD and HD, respectively. Some sources close to the broadcaster revealed that the combined ad rate for SD and HD for IPL 2024 is Rs 16.4 lakh, compared to Rs 16 lakh in 2023.

The Election Dilemma

The upcoming general elections is perceived as another factor hindering deal closures. "Many brands are awaiting the election schedule and may redirect their focus towards IPL in the latter half, once the election fever subsides," explained another planner. “Regional and smaller brands, in particular, get active during elections, and both Disney Star and JioCinema are hoping to tap into this space. They will perhaps hold on and get active only after the election dates are announced and they have more clarity on where to spend their money,” said another planner.

Meanwhile, despite the challenges, sources reveal that JioCinema has secured six associate partners for the tournament-- HDFC PayZapp, Dalmia Cement, SBI, Britannia, Parle Hide & Seek, and Charged By Thums Up. On the other hand, Star Sports is believed to have finalized agreements with several significant brands, although details remain undisclosed. According to industry sources, Asian Paints has joined as an associate sponsor. Additionally, a prominent gaming brand, an FMCG company and a BFSI brand are expected to finalize deals as main presenters by the end of the week.

Cooperation Over Competition?

Call it the merger effect, unlike the scenario in 2023, when both JioCinema and Disney Star engaged in an overt battle, sources indicate that the internal rivalry has significantly diminished, albeit it still persists in a subtle manner. "This time, both players are not as aggressive in their pitches against each other, possibly because they are on the brink of merging into a single entity. While there is no explicit collaboration between the two, there seems to be a lack of overt rivalry," noted another source.

Last year, both JioCinema and Disney Star got into a fierce competition to outdo each other. However, post the tournament, both are believed to have faced a revenue decline due to stiff competition and a sluggish market. According to sources, Disney Star earned between Rs 2,000 and Rs 2,500 crore, while Viacom18 made around Rs 1,800 crore.

IPL 2024 is scheduled to commence on March 22, 2024.