 "With Ten Sports, Sony shows its ambitions")
Within five years of launching its Sports Cluster, Sony Pictures Network has emerged as the second player in a clear duopoly in the Indian sports broadcasting industry. With the buyout, the network now has a robust bouquet of nine sports channels, apart from Sony Max and Sony Aath which are selectively used for telecast of sporting events.
The acquisition has the potential to spark a shake-up of the sports broadcasting industry in India. Sony has trumped Uday Shankar-led Star India in terms of cluster strength with nine channels; Star Sports has eight channels. Besides, for event organisers, the buyout means, they now have only two meaningful options when it comes to selling media rights.
"The acquisition of Ten Sports Network will strengthen Sony's offering for viewers of cricket, football and fight sports, complementing our existing portfolio of international and domestic sporting properties," says NP Singh, CEO, Sony Pictures Networks India. "It also aptly demonstrates Sony's commitment to providing a broad range of sporting entertainment to fans across India and the sub-continent," he adds.
The network started investing in non-cricket properties much before others caught on to it after the success of the Pro Kabaddi League. Prasanna Krishnan, who manages the sports channels for the network, has maintained since he joined Sony in 2013 that banking on cricket will not allow the sports cluster to grow holistically.
As a result, Sony has been betting on many domestic and international leagues-with the telecast rights for FIFA 2018, Emirates FA and UEFA Euro 2016, it is already the home for international football. Besides, it also has the broadcast rights for the NBA tournaments, UFC and Pro Wrestling League.
The acquisition of Ten Sports will add to Sony's overall portfolio. Ten Sport's telecast rights are a healthy mix of cricket, football, combat sports and tennis. It also has the broadcast rights from the cricket boards of New Zealand, West Indies, South Africa, Pakistan, Sri Lanka and Zimbabwe. With such a diverse offering, Sony believes it can become the sole destination for sports on TV in India.
Going global
Ten Sports will also give Sony a foot in the door in international markets such as the Maldives, Singapore, Hong Kong, West Asia and the Caribbean - regions where it has a significant presence.
Experts say that while Sony will continue its mega push into sports, its focus will shift to growing the business for each of its networks, instead of spending huge amounts on acquisitions.
So far, Sony is still in a phase where it is trying to figure out what works for Indian audiences and what does not. "Domestic leagues are just finding their footing in the country. As broadcasters, we need to see them as start-ups and with any start-up, there is the case of hits and misses. Some will prosper, some will not. It's a chance we have to take. Yes, some have not been as successful as we would have wanted, but, then, that's business," says Krishnan.
With the market turning into a duopoly, both Sony and Star will have to try harder to grow their business. "It is no longer about the bouquet or distribution. The biggest change in the sports broadcast landscape is that the rights will now be awarded on the basis of production and packaging. When there are only two options, the organiser will go for the one that will present the property in the best way possible. This means investments in sports production should increase now," says Vinit Karnik, business head, ESP Properties.
Upping the ante
Star India, Sony's powerful rival in both cricket and non-cricket sports, is looking to grow its non-cricket business by forging partnerships at the promoter level. It owns 33 per cent stake in the Hero Indian Super League, a majority stake in Mashal Sports, the promoter company of the Pro Kabaddi League, and has the media rights for cricket matches organised by the cricket boards of India, Australia, England and Bangladesh. One way Star is trying to protect its turf from Sony is through ownership in sporting leagues it has the broadcasting rights for.
In July, the network also decided to take some of its premium properties like English Premier League, Bundesliga (football), Formula One and the tennis grand slams (Wimbledon) to premium HD sports channels, which it intends to launch by October this year. The move is expected to boost its revenue and bring new viewers to its channels.
Karnik, however, says that Star and Sony should not get too comfortable as the only two main players in sports broadcast. "We are seeing the emergence of non-traditional broadcast in India. A new player could emerge through this route. It's an interesting time in sports telecast in this sense," he says.
Many others agree with him. The emergence of over-the-top content makes it easier for someone with deep pockets, technological expertise and bandwidth to swoop in and acquire the rights for multiple sports properties. All fingers point to Mukesh Ambani's Reliance Jio which launched its services on September 5. Reliance has made clear its intentions to be a disruptive media player in the long run.
TEN SPORTS
Cricket: Telecast rights from the boards of South Africa, Pakistan,Sri Lanka, West Indies and Zimbabwe
Combat sports: WWE
Football: UEFA Champions League, UEFA Europa League, French League, English Football League
Tennis: WTA Events, ATP events
Golf: European Tour, Asian Tour, Ryder Cup, US PGA Championship, LPGA Tour, Professional Golf Tour of India and Golf Channel Block
STAR INDIA
Cricket: Broadcasters for ICC, BCCI, Cricket Australia, England & Wales Cricket Board and Asian Cricket Council
Football: Hero Indian Super League, Premier League, Bundesliga
Badminton: World Federation events, Premier Badminton League
Tennis: Wimbledon, The French Open and International Premier Tennis League
The acquisition has the potential to spark a shake-up of the sports broadcasting industry in India. Sony has trumped Uday Shankar-led Star India in terms of cluster strength with nine channels; Star Sports has eight channels. Besides, for event organisers, the buyout means, they now have only two meaningful options when it comes to selling media rights.
"The acquisition of Ten Sports Network will strengthen Sony's offering for viewers of cricket, football and fight sports, complementing our existing portfolio of international and domestic sporting properties," says NP Singh, CEO, Sony Pictures Networks India. "It also aptly demonstrates Sony's commitment to providing a broad range of sporting entertainment to fans across India and the sub-continent," he adds.
More From This Section
For sometime now, Sony has been ploughing money, and time, to establish itself as a major sports broadcaster in India. To counter Star India's grip over sports, it has been bidding aggressively to acquire the rights for non-cricket events internationally.
The network started investing in non-cricket properties much before others caught on to it after the success of the Pro Kabaddi League. Prasanna Krishnan, who manages the sports channels for the network, has maintained since he joined Sony in 2013 that banking on cricket will not allow the sports cluster to grow holistically.
As a result, Sony has been betting on many domestic and international leagues-with the telecast rights for FIFA 2018, Emirates FA and UEFA Euro 2016, it is already the home for international football. Besides, it also has the broadcast rights for the NBA tournaments, UFC and Pro Wrestling League.
The acquisition of Ten Sports will add to Sony's overall portfolio. Ten Sport's telecast rights are a healthy mix of cricket, football, combat sports and tennis. It also has the broadcast rights from the cricket boards of New Zealand, West Indies, South Africa, Pakistan, Sri Lanka and Zimbabwe. With such a diverse offering, Sony believes it can become the sole destination for sports on TV in India.
Going global
Ten Sports will also give Sony a foot in the door in international markets such as the Maldives, Singapore, Hong Kong, West Asia and the Caribbean - regions where it has a significant presence.
Experts say that while Sony will continue its mega push into sports, its focus will shift to growing the business for each of its networks, instead of spending huge amounts on acquisitions.
So far, Sony is still in a phase where it is trying to figure out what works for Indian audiences and what does not. "Domestic leagues are just finding their footing in the country. As broadcasters, we need to see them as start-ups and with any start-up, there is the case of hits and misses. Some will prosper, some will not. It's a chance we have to take. Yes, some have not been as successful as we would have wanted, but, then, that's business," says Krishnan.
With the market turning into a duopoly, both Sony and Star will have to try harder to grow their business. "It is no longer about the bouquet or distribution. The biggest change in the sports broadcast landscape is that the rights will now be awarded on the basis of production and packaging. When there are only two options, the organiser will go for the one that will present the property in the best way possible. This means investments in sports production should increase now," says Vinit Karnik, business head, ESP Properties.
Upping the ante
Star India, Sony's powerful rival in both cricket and non-cricket sports, is looking to grow its non-cricket business by forging partnerships at the promoter level. It owns 33 per cent stake in the Hero Indian Super League, a majority stake in Mashal Sports, the promoter company of the Pro Kabaddi League, and has the media rights for cricket matches organised by the cricket boards of India, Australia, England and Bangladesh. One way Star is trying to protect its turf from Sony is through ownership in sporting leagues it has the broadcasting rights for.
In July, the network also decided to take some of its premium properties like English Premier League, Bundesliga (football), Formula One and the tennis grand slams (Wimbledon) to premium HD sports channels, which it intends to launch by October this year. The move is expected to boost its revenue and bring new viewers to its channels.
Karnik, however, says that Star and Sony should not get too comfortable as the only two main players in sports broadcast. "We are seeing the emergence of non-traditional broadcast in India. A new player could emerge through this route. It's an interesting time in sports telecast in this sense," he says.
Many others agree with him. The emergence of over-the-top content makes it easier for someone with deep pockets, technological expertise and bandwidth to swoop in and acquire the rights for multiple sports properties. All fingers point to Mukesh Ambani's Reliance Jio which launched its services on September 5. Reliance has made clear its intentions to be a disruptive media player in the long run.
| BROADCASTING RIGHTS: WHO HAS WHAT |
| SONY Cricket: IPL Football: FIFA 2018, UEFA Euro 2016, FIFA World Events Tennis: Australian Open, ATP 1000 and 500 World Tour Events, Champions Tennis League Combat sports: TNA, UFC, Pro Wrestling League |
TEN SPORTS
Cricket: Telecast rights from the boards of South Africa, Pakistan,Sri Lanka, West Indies and Zimbabwe
Combat sports: WWE
Football: UEFA Champions League, UEFA Europa League, French League, English Football League
Tennis: WTA Events, ATP events
Golf: European Tour, Asian Tour, Ryder Cup, US PGA Championship, LPGA Tour, Professional Golf Tour of India and Golf Channel Block
STAR INDIA
Cricket: Broadcasters for ICC, BCCI, Cricket Australia, England & Wales Cricket Board and Asian Cricket Council
Football: Hero Indian Super League, Premier League, Bundesliga
Badminton: World Federation events, Premier Badminton League
Tennis: Wimbledon, The French Open and International Premier Tennis League