As the Indian Premier League (IPL) gears up for another season, JioCinema, the official free streaming platform, has made a surprising move – keeping its ad rates unchanged from 2023. This decision stands in stark contrast to market expectations, which often anticipate price hikes for major sporting events.
Mid-roll ads will remain within the range of Rs 200-250 per 10 seconds, while pre-roll ads see a minor bump of Rs 25, reaching Rs 250-300 per 10 seconds. CTV ad rates also stay steady at Rs 6.5 lakh per 10 seconds.
Analysts are offering various interpretations of this strategy. Some see it as a cautious approach in a potentially uncertain economic climate. Others view it as a confident move, reflecting JioCinema’s belief in its strong viewership and reach. Additionally, the stable rates could be a competitive tactic to attract advertisers in the face of rivalry from platforms like Disney+ Hotstar.
JioCinema, holding the IPL digital rights until 2027, faced stiff competition with Disney Star in 2023 for a significant share of media expenditures from advertisers, with estimated figures reaching around Rs 1200 to 1500 crores. In 2022, Disney+ Hotstar, the official IPL streamer, earned Rs 1500 crore in ad revenue.
JioCinema’s decision raises several questions. Will advertisers be comfortable with the slightly higher pre-roll rates? Can the platform maintain its revenue targets without raising prices across the board? Ultimately, the success of this strategy hinges on the viewership numbers and engagement achieved during IPL 2024.
