India as a country loves sports and glamour. We crave for them as a thirsty person in a desert. Earlier we Sports was different and Entertainment is different. But the gap between them is shortening every year. The reason behind this you might ask are IPL & ISL. The 2 flagship products that have combined entertainment and sports together.
IPL or the Indian Premier League was the innovator of the concept of Sports entertainment in India. In 2007 when Lalit Modi introduced this concept of combining cricket with entertainment, It was an instant success which brought a pool of revenue to BCCI and the franchises involved in the game. It is a Brand itself now. Every year 8 teams compete with the trophy and the cash price involve with it.
The similar model can be seen for ISL or Indian Super League. But, here the sport is not Cricket but Football. Though Football is the most popular sport in the world, In India it is cricket. Still, the event brings in a lot of revenue and viewership every season. The star power involved behind the clubs are a boost to cause of turning football into a sport which can be combined with entertainment.
Now the question is how are they restricting other new products to enter the market? Well IPL & ISL are big events in India. Every year the extravaganza returns with a bang and now they are flagship products. They have created a brand for their own. The power of these brands creates the difference that the consumers look for. This in Economic terms is known as Product Differentiation.
There are other products which are a new entrant into this market such as Pro Kabaddi League and Indian Premium Futsal. However, they are not in the same league as of IPL and ISL (no pun intended). Both of this products have a life cycle of 2 seasons at least still they are unable to create the impact like IPL & ISL. The most amount of revenue generated from the Sports entertainment sector is among the top 2 players. Their product has a huge brand value which creates the difference in the market. Today there are possibly many sports that can enter this market and become successful. However, as long as IPL & ISL are still the leaders of the market, there is a high barrier to entry into this market.
No comments:
Post a Comment