JioStar Vice Chairman Uday Shankar has raised concerns over the escalating cost of cricket media rights, arguing that the sport remains an exceptionally powerful investment for building audiences but that the financial model underpinning premium sports broadcasting is becoming increasingly difficult, according to a report by The Economic Times.
The scale of that opportunity is evident in JioStar’s digital reach. The company, created through the combination of the former Disney Star and Viacom18 businesses, has grown to 600 million monthly active users on digital, with sports playing a major role in aggregating viewers at scale and bringing some of those audiences into its wider entertainment offering.
But that reach has required substantial investment in cricket. JioStar has committed billions of dollars to properties including the Indian Premier League (IPL), ICC events and BCCI bilateral cricket, placing it at the centre of an increasingly challenging rights market.
Cricket rights economics come under pressure
Shankar sees the cost of securing premium sports content as one of the central problems confronting the business. JioStar Vice Chairman Uday Shankar said in conversation with Times Internet Chairman Satyan Gajwani:
“Financially, sports, especially (in) cricket, prices have run out of control. And that’s a real challenge.”
The concern extends beyond the headline price of individual rights packages to the competitive environment surrounding them. The number of major media businesses actively pursuing sports properties has declined from the levels Shankar saw a decade ago, leaving JioStar in a markedly different marketplace.
Shankar noted: “Ten years ago, there were at least four media companies always vying for sports rights. Today, it feels like we are the only ones standing. There’s something broken.”
For JioStar, the attraction of sports nevertheless remains substantial. Shankar described cricket and other sports as capable of producing audience growth at a scale difficult to replicate elsewhere, while also creating an opportunity to convert sports viewers into consumers of entertainment content.
JioStar looks beyond the traditional media model
The rights-cost challenge forms part of a broader question over how premium video businesses generate sustainable returns. JioStar is focusing on improving both storytelling and the visual experience of its content while also seeking a new business model for media.
Advertising and subscriptions have traditionally formed the foundation of that model, but advertising is facing growing competition from technology platforms and other players. Shankar stated: “You cannot build a business in the 21st century with a business model that was created in the 19th century.”
That challenge could become more pronounced as artificial intelligence reshapes the volume and variety of content available to consumers. In an environment with substantially more viewing choices, brand strength is also expected to become increasingly important in helping media businesses stand out.
Shankar added: “I think most people think that there’s too much content and I think they haven’t seen all of it yet. I think there’s going to be way more content and the level of innovation that will come in content with AI is pretty phenomenal and people should get ready for that.”
IPL points toward cricket’s shorter-format future
Changes in consumer behaviour are also influencing Shankar’s view of cricket itself. He expects shorter formats to play an increasingly important role, with the IPL and the spread of T20 leagues around the world demonstrating the appeal of a faster version of the sport built around identifiable teams.
Shankar said: “Consumers like crisp, short formats. They like the IPL. The success of the IPL is not an accident.”
That does not mean traditional international cricket is set to disappear. Bilateral contests involving major markets including India, England and Australia are expected to retain their importance, although Shankar does not view crowds in stadiums alone as an adequate measure of the sport’s overall health.
Cricket’s wider sustainability is tied to the economics behind it, including the value generated through media rights and the ability of cricket boards to produce sufficient revenue to compensate players and invest in infrastructure.
Women’s cricket and emerging markets offer growth opportunities
Women’s cricket represents another area in which Shankar sees significant potential. JioStar holds the media rights to the Women’s Premier League through the five-year ₹951 crore (approx. US$ 99m) agreement originally secured by Viacom18.
Shankar believes the BCCI and ICC have taken appropriate steps to promote women’s cricket, while further development across the wider ecosystem is needed to establish the depth of talent already present in the men’s game.
Expanding cricket successfully into new countries will similarly require more than introducing the sport at the top level. Shankar’s proposed approach centres on building stronger club cricket in emerging markets and creating a structured competitive pathway that allows teams to progress through increasingly demanding levels, providing a sustainable system capable of developing talent.
The combination of those growth opportunities and cricket’s ability to attract enormous audiences continues to underpin its value to JioStar. The challenge now is whether the commercial model surrounding those audiences — particularly the cost of acquiring the game’s biggest rights — can develop alongside the changing economics of the wider media industry.
