Economics of IPL-2

As far as high drama is concerned, the second edition of the Indian Premier League (IPL) definitely scored over DLF IPL-1. Whether it was the excitement over renegotiated TV rights for a record $1.6 billion (Rs 8,200 crore) by Sony or the uncertainty over DLF IPL-2 taking place at all due to security issues and subsequent shifting of the venue to South Africa, or the audacity of telecaster Sony Max which raised the asking price for 10-second advertising spots from Rs 2.25 lakh to Rs 3.5 lakh, the run-up had its share of extremes.

But, will IPL-2 replicate this showing in business terms as well? By Business Today’s calculation, the game is expected to end on a financially good note for many of those involved. Here’s how: According to AdEx India, a division of TAM Media Research, average television ratings for DLF IPL-2 till May 18 stood at 4.2 per cent, compared to 4.73 per cent last year. But says Nandini Dias, COO, Lodestar Universal, “Considering that IPL moved out of the country, it has held out very well. In terms of television rating points (TRPs), the numbers may look marginally lower than last year. But, this is not indicative of the actual number of people watching it, which is significantly higher.”

 
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