Effects of Cricket World Cup 2023 on OTT Platforms and Economy of India

Summary: Cricket is always close to the heart of every Indian. The impact of the cricket tournaments on the Indian economy is very significant. This analysis explores the OTT channel through which the Cricket World Cup 2023 affected Indian Economy.

Data Source: Google search Interest, Google Trends

Packed stadiums. Raucous crowds. Hooting vuvuzelas. Cricket’s craze in India is unmatchable. The stage was set for cricket’s biggest carnival, which kicked off in India on October 5, 2023, with 10 nations competing for the World Cup over six weeks.

At first glance, the figures of the most popular sports in the world, with over a billion supporters. But the cricket market is still mainly restricted to a few nations, chief among them India, some five centuries after the game was first mentioned in southeast England. The first international matches were played in the second half of the 19th century, and the sport spread throughout the British Empire. point to a global phenomenon: cricket is one.

Disney Star proceeded with free streaming of the ICC Cricket World Cup on its OTT platform Disney+ Hotstar, according to a key relief ruling from the Telecom Disputes Settlement and Appellate Tribunal. Analysts anticipate that India's economy will benefit from the World Cup of cricket, with a $1 billion increase in output possible. An extra $2.6 billion in revenue might be added to India's GDP through increased ticket sales, TV rights, travel, and food delivery.

On October 5, the once every four years Cricket World Cup got underway in India, to the dismay of stock-market analysts and economists who seemed more excited about the competition than the fans. Disney Hotstar breaks the streaming record with 59 million viewers in the 2023 World Cup final. It's interesting to note that 20% or so of sports TV consumers already watch on OTT platforms. Cable TVs used to be the primary means of distributing sports programming, particularly when it was being streamed live. But in a matter of years, OTT has completely taken over this sector.

Global OTT sports content consumption has surged as mobile devices and internet penetration increase. By 2030, the sports content streaming business is expected to reach a valuation of over $93 billion.

The chance for brands in the sports industry to enter the OTT market and take advantage of the shift in viewership patterns in recent years is tremendous, with a whopping 63% of sports fans interested in subscribing to an all-sports over-the-top channel.

The BCCI was able to obtain a substantial rise in its annual earnings share of $600 million from ICC. Other cricket boards are far behind.

Millions of tourists from India and other countries attended the tournament, which helped the tourism and hospitality industries. The 2023 Cricket World Cup is predicted to bring in up to ₹4,500 crore for the media and entertainment sectors.

But the World Cup contributed to inflation. Services fees skyrocketed during the competition. Inflation during October and November increased from 0.15% to 0.25%.

The economic effects of the event go beyond the immediate spectacle, generating interest from around the world and future travel.

India's media and entertainment companies' proportion of revenue from digital rights is impacted by rising content costs and a focus on balance sheets. FICCI-EY reports that in 2023, revenue from content sales to over-the-top (OTT) platforms made up about 17.7% of total revenue, down from 48.6% in 2020.

By

Reet Chopra

B.A. (H) Economics (2023-26), School of Behavioural and Social Science (SBSS), Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad, Haryana.