Why Dream 11 is not considering global expansion and other news

Update 1

We are in week 13 of the year and our first story is about IPL Broadcasting rights, its business complexity with big losses but strategic gains.

The Indian Premier League (IPL) is a highly valued sports property, but broadcasting rights may not always translate into proportional returns for investors. The current five-year IPL broadcast rights are worth Rs 47,333 crore, and broadcasters like Disney STAR and Viacom18 may face significant losses despite advertisement revenue.

Sports broadcasting rights are often considered ‘loss leaders,’ with companies aiming for long-term gains and market dominance rather than immediate profits. The future of IPL broadcasting rights may see less intense bidding wars, giving broadcasters more bargaining power with advertisers and potential leverage to charge higher subscription fees.

In the meantime, the execs from the newly merged media house will focus on making ad revenue from the 100+ general entertainment channels they own.

Update 2

My second story this week is about Ormax Media’s 2024 Sports Audience Report

So, Ormax Media’s research report reveals India’s sports audience base at 678 million, with Cricket, Football, and Kabaddi as the top 3 sports with an audience base of 612, 305 & 208 million respectively. The report also reveals that Chennai Super Kings, Manchester United, and Patna Pirates are the most-recalled franchises in their respective sports. 

The Ormax media research is the largest of its kind in India with over 12000 respondents between November 2023 to January 2024 across rural and urban India covering 21 sports, 53 sports tournaments, 50+ clubs and franchises.

The report serves as a comprehensive guide for stakeholders in the Indian sports industry, including broadcasters, franchise owners, sports associations, and advertisers.

Update 3

The third story is about India’s Esports Industry, its growth and its bright future beyond participation.

India’s esports industry has experienced remarkable growth, transitioning from a niche interest to a mainstream phenomenon, captivating millions of enthusiasts. According to the gaming media, The industry is estimated to be worth USD 2-3 billion, contributing approximately 1.5-2% to India’s economy.

With the Indian gaming sector set for 20 per cent growth anticipated to reach Rs 231 billion by FY25 and with Esports gaining official recognition as a formal sport by the Indian government, becoming a medal event at prestigious international competitions like the Asian Games and Commonwealth Games. Gaming now offers genuine career opportunities, debunking the notion of it being merely a time-wasting activity.

It has the largest mobile gaming market, surpassing others in app downloads and transaction-based game revenues, which saw a 39% increase in 2022. India also boasts the largest fantasy sports market globally with 180 million users and has attracted significant investment, totaling USD 2.8 billion from domestic and global investors. And let’s not forget the government of India’s push for gaming sector excellence by establishing the AVGC Centre of Excellence and dedicated AVGC policies in states like Karnataka and Telangana reflect its commitment to nurturing the gaming sector’s growth.

India’s e-gaming market is projected to grow by 20% to reach Rs 231 billion by FY25 and Rs 25,300 crore by FY27. India dominates the global gaming scene with 9.5 billion gaming app downloads in 2023, contributing 20% of the world’s total.

Update 4

My fourth story is about how Indian influencers are going beyond digital and into the linear space with a huge partnership Star Sports has struck with CarryMinati

India’s A-List influencer CarryMinati joining hands with  Star Sports to become the face of ‘Cheeky Singles’ for IPL 2024.

In my previous updates and my recent work with European football clubs, I have been very bullish about communication with influencers to build brand awareness and loyalty amongst fans in India. Star Sports has collaborated with popular YouTuber and content creator CarryMinati for their special weekly show ‘Cheeky Singles’.

CarryMinati who has 41.6 million subscribers on YouTube will bring his unique brand of humor and connect with the younger audience, adding an entertaining twist to the show. The show will feature highlights from the week, trending topics, and satirical takes on moments from the IPL 2024 season.

Update 5

My fifth and final story for this episode is about Dream 11’s growth strategy and why they are not yet considering a global expansion

Dream11  India’s leading Sports Fantasy Game currently has around 22 crore users in India and the founder Harsh Jain still sees more room to grow. According to Harsh, The platform is currently accessible to Indian audiences only and they continue to grow with their strategy.  In its 15 years of operation, Dream 11 has seen 15 crore people on its platform. Last year, they added 5.5 crore more users to the platform. It is also important to notice that the majority of users on the platform are between the ages of 25-60 years old, and are from smaller towns. Just 28 per cent of them belong to the country’s tier 1 and tier 2 cities.

Revenue from the Indian fantasy sports industry grew 31 per cent to reach Rs 6,800 crore in the financial year (FY) 2022. This figure is expected to cross Rs 25,240 crore by FY 2027 at a 33 per cent Compound Annual Growth Rate (CAGR), according to a recent report by The Federation of Indian Fantasy Sports (FIFS) and Deloitte India.

With over 300 fantasy sports platforms (FSPs) and an estimated 180 million users, India is the fastest-growing fantasy sports market in the world. The sector, which was valued at Rs 75,000 crore in FY22, is projected to reach 500 million in the next five years.