Free Cricket Streaming: A Risky Gambit by Disney-RelianceFree Cricket Streaming: A Risky Gambit by Disney-Reliance Amidst India’s immense cricket fandom, Disney-Reliance has emerged as the dominant force in broadcasting rights for major tournaments. However, their recent decision to offer free streaming of these events has raised questions about their business strategy. Monopoly and Free Services Disney-Reliance wields a monopoly over cricket broadcasting rights in India, having secured a $3 billion deal with Disney India. Despite its dominance, the company continues to stream marquee tournaments like the World Cup and IPL without requiring a subscription. Ad-Based Revenue Model Instead of charging viewers, Disney-Reliance relies on an ad-based revenue system. This approach may seem counterintuitive, given the substantial costs associated with broadcasting rights and tournament production. Driving Subscriber Growth Experts speculate that Disney-Reliance’s motive for offering free streaming is to attract subscribers to its platform. These freebies are seen as long-term investments that aim to build a larger subscriber base. Financial Risks While the revenue generated from ICC tournaments is significant, it falls short of the exorbitant broadcast rights costs. Analysts predict that Disney-Reliance may face financial losses in the coming years due to high staffing expenses. Long-Term Sustainability The question remains whether Disney-Reliance’s free streaming strategy is sustainable in the long run. Experts suggest that the platform may eventually need to consider subscription models to cover its expenses. Conclusion Disney-Reliance’s decision to offer free cricket streaming has created a unique business model in the Indian market. While it may drive subscriber growth in the short term, it remains to be seen whether this approach can ultimately sustain the company’s financial health and the long-term viability of its cricket broadcasting empire.
India has the largest cricket fan base in the world. India’s cricket economy is bigger than that of all other countries combined. It’s no wonder that broadcast rights in this country for major cricket tournaments are among the most popular things for sale. But the latest trend of streaming platforms raises a few questions about their business strategy.
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Disney-Reliance has a monopoly on broadcasting rights when it comes to cricket in India. Reliance signed a $3 billion deal with Disney India to take over the business. Although it is the biggest player in the arena, it continues to offer free streaming of major cricket tournaments to users.
This move by the company has taken everyone by surprise as post-merger, tournaments like the World Cup and IPL were expected to require a subscription to stream. However, the company still relies on an ad-based revenue system instead of charging viewers.
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The revenue generated from the ICC tournament is huge, but it is still nowhere near what the broadcast rights cost the company. The company is expected to make losses in the next 4 years due to high staffing costs.
So why do they choose this operating model? Experts believe that platforms want to attract subscribers and giving these freebies in the long run can help the streaming platform build a larger subscriber base, which will ultimately benefit the company.
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