Star Media Suffers Big Loss This World Cup
Star Media to suffer huge losses this World Cup after 4 rained out matches and maybe even more to come.
Star Media who bought the rights to broadcast ICC events for $1.85 Billion out of which $500 Million was for this year's World Cup, Star India had made Rs 1,250-1,350 from advertising after selling sponsorships and advertising for this World Cup .
The India vs Pakistan match the rates were much higher with total revenue generated around Rs 125 crore and 10 second ads costing Rs 20-22 Lakh each. However due to the many rain delays and matches being not played the Star India will have to pay the advertisers their money back. The ICC will not reimburse Star India for this loss. The cost of advertisements for matches against Australia, England and other big teams also cost a lot.
Usually for an India match they would have sold Rs 65-75 crore worth of ads. 10-second slots cost Rs 15 Lakh. When the India vs New Zealand match was abandoned without a ball being bowled it cost Star India alot of money, as they had to pay all the advertisers back.
Star will make back some of the money lost by the abandoned matches through insurance companies. However this takes a very long time and there is no guarantee that all the money lost will be recovered by the insurance companies.