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JioStar Ditches Cricket for South India's Creative Boom
11 Dec
Summary
- JioStar may exit $3 billion ICC media rights deal due to mounting losses.
- Company commits Rs 4,000 crore to South India's creative economy.
- Declining cricket popularity and ad revenue impact sports broadcasting.
JioStar is signaling a major strategic pivot away from expensive cricket media rights, potentially exiting its four-year, $3 billion ICC deal. This decision follows substantial losses in sports contracts, which more than doubled in FY25 to Rs 25,760 crore, largely due to the ICC package inherited from Star India. The strengthening US dollar has further inflated this burden.
In stark contrast, JioStar has announced a Rs 4,000 crore investment in South India's creative economy. This includes a 25-title regional slate, new training centers, and a content pipeline targeting the rapidly growing southern entertainment market. This move capitalizes on the region's booming cinema revenue and expanding viewership, particularly on connected TVs.
The shift acknowledges the unsustainable economics of cricket broadcasting in India, where brand value has declined and advertising revenue has been hit by the ban on real-money gaming. While cricket remains a high-value property, the current pricing is deemed unfeasible by analysts, pushing broadcasters like JioStar to seek more profitable ventures in regional content.
