TV broadcasters on a sticky wicket: Global cricket economy heads towards major correction on weaker profits, smaller budgets

Core Insights - The broadcasting industry is facing a significant correction due to shrinking advertising budgets, weaker TV profitability, and ongoing streaming losses, leading to a reassessment of payment capabilities [1][14] - Industry consolidation, particularly the merger of Star India and Viacom18 into JioStar, has reduced competition for major cricket properties, impacting rights pricing [1][12] Broadcasting and Rights Pricing - The previous model where broadcasters absorbed losses while rights owners profited is no longer sustainable, contrasting sharply with the $10 billion committed to cricket in the 2022-23 cycle [2][14] - Rights prices are expected to correct due to consolidation and regulatory changes, with predictions of a 40-50% drop in ICC and BCCI rights and up to a 20% correction in IPL rights [6][15] ICC and Financial Implications - The ICC is in a precarious position, struggling to secure firm bids for its 2026-29 cycle, with no interest shown for its $2.4 billion valuation [8][15] - A decline in India rights income would significantly impact ICC member boards, particularly the BCCI, which contributes nearly 80% of ICC revenue [10][11] Market Dynamics and Future Outlook - The merger of Star India and Viacom18 has led to a substantial reduction in competitive intensity, with both companies previously spending nearly $10 billion on cricket rights [12][15] - Global streaming platforms like Netflix and Amazon Prime Video remain cautious due to misalignment with the advertising economics of live sports, limiting their interest in large cricket packages [13][15]