ARTICLE
6 September 2024

Streaming Wars: How OTT Platforms Are Redefining Sports Broadcasting

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Naik Naik & Company

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Established in 2004, Naik Naik & Co. started out as a niche media practice which has metamorphosed into a full-service law firm. Headquartered in Mumbai with a pan-India presence, we advise and perform across all aspects of corporate, disputes, banking and finance, and intellectual property law. Our sectoral focus is our differentiator and we can boast of strong industry sector expertise for over two decades. Our practice is anchored in quality service, professionalism, and integrity.
In India, for decades, sports broadcasting was synonymous with Door Darshan (DD), the sole broadcaster in the country, dictating what we watched and how we watched it. Back then, tuning in to a match...
India Media, Telecoms, IT, Entertainment

Before OTT: When DD Ruled The Field

In India, for decades, sports broadcasting was synonymous with Door Darshan (DD), the sole broadcaster in the country, dictating what we watched and how we watched it. Back then, tuning in to a match wasn't just a casual affair—it was a privilege, limited to those who could afford televisions and the necessary license fees. The government, citing national interest, tightly held the reins of broadcasting under theIndian Telegraph Act of 1885.

However, the winds of change began to blow in the late 1990s with the Liberalization, Privatization, and Globalization (LPG) scheme. The Prasar Bharati Act, 1990 aimed to improve broadcast access and quality, but private players were still kept at bay with exorbitant fees. It wasn't until the Board of Control for Cricket in India (BCCI) made its landmark deal in 1992—selling the broadcast rights of the England tour to TWI, which then passed it on to DD for a whopping $1 million—that the potential goldmine of sports broadcasting became apparent.

This shift led to significant legal and competitive challenges. A pivotal moment came with the Supreme Court's ruling in the Secretary, Ministry of Information and Broadcasting v. Cricket Association of Bengal case. The court declared that airwaves are public property and cannot be monopolized by the state, paving the way for a more open broadcasting industry.

Mandatory Sharing: The 2007 Game Changer

The next big shift came in 2007 with the enactment of legislation that leveled the playing field even more- Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007. Private broadcasters were now required to share live feeds of events deemed to be of "national importance" with DD, ensuring that every Indian could tune in without needing a pricey subscription. This was a game-changer, particularly for those who couldn't afford cable TV or satellite packages. Section 3(1) of the Act ensured that no one was left out of the action, with DD broadcasting these feeds across its terrestrial network for free.

From Remote Controls To Swipe-and-Click: OTT's Winning Streak

Cut to today, and the sports broadcasting landscape has undergone a trimerous shift. Gone are the days when families huddled around the TV, arguing over who gets the remote. Now, sports fans are all about swiping, clicking, and streaming. OTT platforms like Amazon Prime Video, Disney+Hotstar, and JioCinema have become the new superstars in the sports broadcasting world, offering flexibility that traditional TV networks simply can't match.

OTT platforms have scored big by giving fans what they crave: the ability to watch their favorite sports anytime, anywhere, and on any device. It's like having a VIP pass to the best seats in the stadium—only better, because you can pause, rewind, or skip ahead as you please.

One of the biggest plays in this space came when Viacom18 secured the streaming rights for the Indian Premier League (IPL) in 2022, shelling out a jaw-dropping $3 billion. They took things up a notch by streaming IPL matches for free on JioCinema, drawing in a record-breaking 32 million concurrent viewers during the IPL final. This was more than just a power play; it was a clear signal that the future of sports broadcasting lies in OTT platforms.

OTT's Global Wins: From FIFA To NFL

The dominance of OTT platforms isn't limited to cricket. In 2023, Disney+Hotstar made headlines with its streaming of the FIFA World Cup final, pulling in 59 million viewers who tuned in to see Argentina and France go head-to-head. This digital stampede solidified OTT platforms as the new go-to for global sports events.

And it's not just football. OTT platforms have been steadily gaining ground in other sports as well, with exclusive streaming rights for major NFL games and other top-tier events. It's clear that OTT is no longer just a player in the game—it's the MVP.

The Future Of Sports Broadcasting: A Monopoly In The Making?

In 2024, The big Anant Ambani- Radhika wedding was not the only flagship event, rather Reliance Industries and The Walt Disney Company announced a strategic joint venture worth a staggering $8.5 billion, merging Viacom18 and Star India. This new behemoth now controls 75-80% of the sports broadcasting market, prompting concerns from the Competition Commission of India (CCI). While Reliance and Disney have offered some concessions and have also committed to not increase the advertisement cost to seal the deal, the companies are unwilling to sell any cricket broadcast rights, which is the major aspect of the deal, hence still awaiting the decision.

Conclusion: Need For New Rules In The Streaming Game

With broadcasting rights providing leagues, tournaments, and teams with their primary source of revenue, sports broadcasting has grown to be an essential component of the sports industry in recent years. One urgent regulatory concern is the emergence of over-the-top (OTT) services, which broadcast sporting events without complying with existing Indian laws. The industry is uncontrolled as the Supreme Court has not yet made a ruling on OTT rights, despite a number of High Court cases and the Madras High Court's ruling in the Adithya Modi case where the court held that the Sports Broadcasting Act did not impose any restriction on the right to access information to deprive any citizen of information, as it was not 'essential or necessary' for an individual to have access to such services freely through the internet. Updated laws are necessary since major players like Disney Hotstar and BCCI demand exorbitant fees for exclusive rights. In order to regulate OTT platforms, the 2007 Act could need to be amended or replaced with new laws. As a result, there has been much discussion on how content on OTT platforms should be regulated.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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