Uday Shankar says Disney Star misjudged value of a cricket right

JioStar Vice Chairman Uday Shankar has called for greater alignment between the commercial economics of sports and the excitement they generate among fans, highlighting the growing pressure on broadcasters and streaming platforms from rising media rights costs.

At a recent event, Shankar said the industry needs to address the widening gap between the popularity of sports and the returns they generate. He pointed to a significant consolidation in the sports rights market, noting that competition among four or five bidders 15 to 17 years ago has given way to a market with very few major contenders.

Shankar also said that he sees considerable potential in other properties like Kabaddi. However, he cautioned that large audiences alone cannot guarantee commercial sustainability, particularly as rights costs rise faster than advertising and subscription revenues.

According to Shankar, media companies are becoming more selective about acquiring premium sports rights, including properties they might have pursued aggressively five or ten years ago.

“The IPL as a league is one of the most exciting leagues, both in terms of its reach and viewership and in terms of its economics. You’ve seen some of the teams that have been sold or acquired recently, and the valuations they’ve gone for.

“But I think there is a huge opportunity to grow the sports market in India to the next level, and take it beyond. Cricket by far is still going to be the most exciting sport, because it’s a national passion, and as more and more people get into the world of video consumption in India, cricket will continue to ride that wave. But there is a real opportunity to grow other sports.”

He also highlighted monetisation as an issue that deserves greater attention alongside content and technology. In his view, relying solely on advertising or conventional subscriptions is becoming increasingly difficult.

"...the other big problem is that while prices have been going up exponentially, the advertising market and the subscription market in India is still, we have a lot of subscribers, but the value per subscriber is still very low, because that’s determined by the capacity of the consumer. And the advertising market hasn’t kept pace. There has been enormous fragmentation. As I said, everybody is now participating in advertising. And that is the biggest challenge.

"I think in the next cycle of IPL bidding, you will see that playing out. People would be disciplined. You know that Disney Star, which was a great company, and I was involved with that company for a number of years, they went wrong in assessing the value of one premium cricket right. And that put so much pressure on the company that it found it difficult to recover, despite having very strong revenue. I think those are the risks.

Shankar believes India can develop a more diverse sports market over the next decade, but doing so will require sustained investment in talent, infrastructure and fan engagement.

He cited the Pro Kabaddi League as an example of how a sport can be developed through long-term commitment. Although kabaddi was widely known in India, it needed investment and organised structures to establish itself as a mainstream professional property.

Infrastructure remains a significant challenge. Unlike cricket, which has established systems for identifying and nurturing talent, several other sports lack comparable physical facilities and institutional support. Shankar noted that kabaddi still lacks a dedicated stadium, with venues often having to be assembled and dismantled for tournaments.

He questioned whether the current structure of the cricket calendar consistently serves audience interests. 

“The calendar is crowded. But that’s not the real problem. I think people love the sport. People want to watch it. The problem is that the calendar is oftentimes not designed keeping the fan in mind.

“When there is a big match, there is no problem. You can have as many big matches as you can. Whether you can monetise them adequately is a different matter, but people will come and watch. The passion for the sport is so much.

“The problem is that there are a large number of completely meaningless games. If the number one team in cricket, whether it is India or Australia, is playing the number 15 team, which nobody is excited about, everybody knows what the outcome of the game is going to be. It’s like the number one seed at Wimbledon competing with the number 200 seed in the world. Even in a first round match, maybe there is one wild card entry like that. But number 200 doesn’t have a chance. Then there will be no interest in it. Cricket has an overdose of that.”

Shankar said JioStar's strategy increasingly centres on combining technology with creativity to address business challenges. 

He believes artificial intelligence can do more than accelerate content production; it can also transform how media is created, delivered and monetised.

Connected TV is another area of opportunity. Despite the contraction of traditional satellite and cable television, Shankar believes the growth of connected TV and mobile consumption could strengthen the overall market by opening up new ways to reach audiences.

Looking ahead, he sees the potential for India to emerge as a more diverse sports market over the next 10 to 15 years. Realising that opportunity, however, will require rights holders, broadcasters and sports bodies to take a longer-term view, invest in building their properties and find ways to create value beyond live events.