Asia-Pacific to suffer $2.0 bn loss in sports revenue in 2020 due to Corona

Asia

NEW DELHI : The emergence of a global public health crisis with the spread of coronavirus (COVID-19) in the recent weeks has impacted the global sports calendar.Such disruption across the sports ecosystem is unique and is the first of its kind since the emergence of modern sports media contracts said research firm Media Partners Asia (MPA) in a new report titled The Asia Pacific Sports Media 2020.

The report estimated a $5.7 billion sports-related media revenue generation in 11 key markets in the region for 2020, compared to a $6.0 billion rights investment by broadcasters and video streaming platforms.

MPA has provided an impact analysis of how COVID-19 will affect sports media dynamics in 2020 and 2021 and has consequently revised down revenue forecasts.

MPA expects a 35% drop in sports-related media revenue generation in Asia-Pacific for the 2020 calendar year, effectively implying a $2.0 billion loss in revenue. This analysis assumes that most of the international properties in basketball, motorsport, tennis, golf and rugby will have a truncated season while European football will likely complete its season.

Domestically, MPA assumes a truncated Indian Premier League (IPL), Australian Football League (AFL), National Rugby League (NRL), Nippon Professional Baseball and others. The report stated that ICC T20 Cricket World Cup is expected to be held to completion in Australia in fourth quarter of 2020.

Around 40% of the 2020 loss will be recovered in 2021 as monetization and demand improves with the Tokyo Olympics and the UEFA Euro taking place

Up to 35%-40% of this loss will be recovered in 2021 when the Tokyo Olympics and the Euro 2020 are expected to be held. In some instances, the growth of subscription based video on demand (SVOD) sports-based offerings with an ability to subscribe month-on-month, could prove important for the sports ecosystem in key markets.

Leave a Reply