Uday Shankar, vice chairman of JioStar, has voiced concerns over the escalating costs of cricket media rights, stating that while sports, particularly cricket, have been a significant investment for the company, the soaring expenses are making the business increasingly challenging.
Shankar, speaking at the ET World Leaders Forum, noted that JioStar has leveraged sports investments to build a substantial digital audience, reaching 600 million monthly active users. This digital reach underscores the potential of sports content in the evolving media landscape.
However, the increasing financial burden associated with acquiring media rights for major cricket tournaments poses a significant obstacle to the sustainability of such investments. The high costs threaten to outpace the revenue generation potential, creating a difficult operating environment for media companies investing heavily in sports broadcasting.
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