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IPL 2012: Set Max revenue down

Mumbai, May 26 (): With the IPL 5 coming to an end its official broadcaster Set Max will see a thirty percent drop in revenues from its expected target. The IPL 5 as a brand too has lost its sheen says market analysts.

With the finals on Sunday, Set Max the official channel is expected to make around Rs 600 crore in season five while last year it was Rs 900 crore, according to media buyers. The broadcaster target was Rs 1,100-1,200 crore in advertising revenue from the fifth edition of the IPL.

Vodafone, Pepsi, Hyundai, Idea and Tata Photon were the only advertisers this year and all of them drove hard bargains before signing on the dotted line. Brand Finance report puts the current brand value of the IPL at $2.92 billion (around Rs 16,162.5 crore) which shows a drop of 29.29 per cent (in dollar terms). It peaked of $4.13 billion in 2010 (around Rs 19,675.3 crore then). Last year, the IPL’s brand value slipped down to $3.67 billion (around Rs 16,632.4 crore then). This was attributed to infighting, poor governance and lack of transparency. This year, concerns were about the charges of spot-fixing as well as the conduct of players off the field.

Media buyers say that for the finals Set Max stuck to ad rates of Rs 8-11 lakh per 10 seconds. However for the league matches, the channel had charged only Rs 4.5 lakh per 10 seconds from sponsors and Rs 5 lakh for spot buys whereas last year it was Rs 5.5 lakh per ten seconds.

TAM sports data at the end of 68 matches, IPL’s season five generated average TVRs (television ratings) of just 3.27 as opposed to 4.81 in the first season. The drop in viewership saw biggies like LG and Godrej staying away. Samsung, Celkon Mobiles, Sony India and Cadbury-Kraft too joined at the last moment and that after getting good bargains and more airtime. Set Max IPL’s TV right is for another five years. Analysts see no further increase in ad rates and the IPL value to come down to $2 billion which need a relook at the whole game touted to be the richest cricket competition in the world. MSM’s (company owning Set Max) paid Rs 8,200 crore for IPL 2 to IPL 10.