News Desk |
India’s leading sports channel may lose revenue of nearly INR 50 Crore if rain interrupts the much-awaited clash of the ICC Cricket World Cup 2019. Star Sports and other sports channels have pinned high hopes with the India-Pakistan cricket match, charging millions for advertisements on the day the match will air.
Moreover, even the advertisement slots have already been sold out since the India-Pakistan match will be the most-watched contest of the tournament; big corporations view it as an excellent opportunity to achieve maximum outreach.
Star Sports is expected to earn the revenues of the Rs.137.5 crore from the India-Pakistan match only through advertisements. The channel has a total of 5500 seconds of advertisement slots, all of which have been sold out. The price for per-second advertisement has hiked to Rs. 2.5.
The sum insured for such events can range between Rs5 crore and Rs50 crore per match on average. Since it is a global large-scale event, the sum insured would be on a higher side.
The channel is now charging more than a 50% premium on last-minute ad buying, with a 10-second slot charging up to INR 25 lakhs. According to the weather report for Sunday, light showers are expected in the town, which means Star Sports may suffer heavy losses.
Star might end up incurring losses upward of Rs50 crore as the insurance covers only a certain percentage of the sum assured. “In the World Cup, matches involving India, Australia, Pakistan, and South Africa are important. If they get affected and the event is not able to maintain the tempo and excitement, there is a chance that advertisers may reduce their commitments,” a source inside Star Sports stated.
“The sum insured for such events can range between Rs5 crore and Rs50 crore per match on average. Since it is a global large-scale event, the sum insured would be on a higher side,” said Sanjay Datta, chief underwriting and claims, ICICI Lombard General Insurance.
Hence, the cancellation of the India-Pakistan match will not only be disappointing for fans, but those who bought tickets at premium prices for the broadcasters too.